Kalshi, the U.S.-regulated prediction market platform, has secured $185 million in fresh capital through a Series C funding round led by crypto investment firm Paradigm. The round reportedly values the company at $2 billion, signaling strong investor belief in the emerging potential of prediction markets.
Other notable backers in the round include Multicoin Capital, Sequoia Capital, and Neo, alongside Citadel Securities CEO Peng Zhao. With this latest raise, Kalshi’s total funding climbs to $415 million.
According to Kalshi, the new funds will go toward scaling its engineering capacity, launching new market structures, and expanding access to mainstream users. The company also pointed to rapid internal growth over the past year—reporting a 100x increase in volume, 10x growth in users, and a 5x expansion in active markets.
Most significantly, the platform emphasized a recent legal milestone: a federal court ruling that allows Americans to trade on the outcome of elections—a move that hadn’t been permitted in over a century.
CFTC Regulation Sets Kalshi Apart From Competitors
Founded in 2019, Kalshi has emerged as one of the few prediction markets operating under full Commodity Futures Trading Commission (CFTC) regulation. This legal clarity allows it to serve U.S. customers—a competitive advantage over platforms like Polymarket, which remain offshore due to regulatory uncertainty.
Kalshi allows users to speculate on real-world events—ranging from politics and economics to sports and weather—by trading contracts tied to yes/no outcomes.
Once dismissed as an academic curiosity, prediction markets are now gaining legitimacy in financial circles. Advocates argue that placing money on the line leads to more accurate assessments of future outcomes—offering insights that are often more reliable than traditional polling or forecasting.
Paradigm co-founder Matt Huang echoed that sentiment in a statement:
“Prediction markets remind me of crypto 15 years ago: a new asset class on a path to trillions. There’s no better team than Kalshi to scale prediction markets and reshape how people think about everything from elections and economic markets to weather and sports.”
A Competitive Landscape and Legal Milestones
Kalshi’s rapid ascent follows a wave of renewed interest in prediction markets, particularly during the 2024 U.S. election season. Both Kalshi and Polymarket saw surges in trading volume tied to political speculation but have since moderated.
A critical turning point came in September 2024, when a D.C. District Court sided with Kalshi in a legal battle against the CFTC, allowing it to offer contracts on congressional races. Paradigm played a supportive role in the case, filing an amicus brief in Kalshi’s favor.
The timing of Kalshi’s fundraising is notable, as rival Polymarket is reportedly finalizing its own $200 million round at a $1 billion+ valuation. These moves suggest growing institutional confidence in the long-term viability of regulated prediction markets.
Kalshi previously raised $30 million in its 2021 Series A and received additional short-term funding from venture firms in 2023, according to reports.
Quick Facts
- Kalshi has raised $185M in a Series C, now valued at $2B.
- The round was led by Paradigm, with support from Sequoia, Multicoin, and others.
- A recent legal victory allows Kalshi to list U.S. election markets.
- Kalshi’s regulated status gives it an edge over offshore platforms like Polymarket.
