Prediction market platform Kalshi has reached a $2 billion valuation after closing a $185 million Series C funding round. Led by crypto-focused firm Paradigm, the round also included investments from Sequoia, Bond Capital, Neo, Multicoin, and Citadel Securities CEO Peng Zhao.
Kalshi CEO Tarek Mansour announced the raise on social media, stating, “People choose to work at Kalshi not because of the money we’ve raised, but because of our ambition: build the most important financial market on the planet.”
The company, launched in 2018 by Mansour and Luana Lopes Lara, has now raised over $340 million. The new capital will go toward expanding Kalshi’s tech team and integrating its markets with additional brokerages. Its event contracts are already available via platforms like Robinhood and Webull.
Regulatory Win Clears Path for Political Contracts
The raise follows a major regulatory development. In May, the U.S. Commodity Futures Trading Commission (CFTC) dropped its appeal of a federal court ruling that allowed Kalshi to list political prediction markets—an area previously restricted under commodities law. The decision affirms Kalshi’s interpretation of the Commodity Exchange Act, allowing the platform to offer contracts on political and other event-based outcomes.
Kalshi emphasized this shift, stating it had achieved “multiple important licenses and legal victories” including a “historic victory in federal court that enabled Americans to trade on the outcome of elections for the first time in over 100 years.”
Brian Quintenz, a nominee to lead the CFTC and a current Kalshi board member, told lawmakers this month that “an event that poses financial, commercial or economic consequences should be considered a commodity.” He pledged to step down from Kalshi’s board if confirmed.
Tribal Legal Challenge and Industry Tensions
Despite federal progress, legal friction persists. On June 19, a coalition of tribal groups filed a lawsuit in New Jersey, claiming Kalshi’s markets constitute Class III gaming under the Indian Gaming Regulatory Act and threaten tribal sovereignty. The suit cites CFTC Rule 40.11(a), which prohibits gaming contracts not authorized by state compacts.
Kalshi vs. Polymarket: Diverging Paths
Kalshi’s biggest competitor, Polymarket, is reportedly finalizing a $200 million funding round at a $1 billion valuation. However, unlike Kalshi, Polymarket lacks U.S. licensing. It remains banned domestically despite attracting over $3 billion in election-related trading volume.
While Polymarket leads in open interest, Kalshi now has more active markets, according to Polymarket Analytics. Kalshi also recently introduced deposits via cryptocurrencies like Bitcoin, Solana, Worldcoin, and USDC through an integration with ZeroHash, appealing to crypto-native traders.
Political and Sports Markets Expand
Kalshi’s growth is reflected in strong engagement with political and sports markets. During the NYC mayoral primary, Kalshi showed Zohran Mamdani at a 99% win probability—a prediction that proved accurate.
The platform also debuted NFL Week 1 contracts and March Madness markets, although the latter drew a cease-and-desist from New Jersey regulators. Still, Kalshi captured 79% of all U.S. prediction trading volume in March and early April, according to Bloomberg Intelligence.
Source:
“Kalshi closes round at $2B valuation”, linkedin.com, Jun 26, 2025
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