Prediction marketplace Kalshi has raised $185 million in a funding round that values the company at $2 billion, CEO Tarek Mansour announced Wednesday.
Paradigm, a cryptocurrency investment firm, led the round. Other participants included Sequoia, Multicoin, Neo and Bond Capital, along with Citadel Securities CEO Peng Zhao.
Kalshi allows users to bet on outcomes ranging from sports and politics to economic indicators. Such prediction markets have surged in popularity following the 2024 presidential election.
“Prediction markets remind me of crypto 15 years ago: a new asset class on a path to trillions,” Matt Huang, co-founder and managing partner at Paradigm, said in a statement.
The funding comes as rival platform Polymarket seeks to raise $200 million in a round valuing it above $1 billion, with Founders Fund leading the effort, according to Reuters.
The companies face different regulatory environments. Kalshi operates legally in the United States after winning a court battle with regulators last year, while Polymarket cannot operate domestically following a 2022 settlement with the Commodity Futures Trading Commission.
Kalshi was established in 2018 by Mansour and Luana Lopez Lara, MIT classmates. The sector faces ongoing scrutiny from critics who view these platforms as gambling operations, while companies argue they provide superior forecasting capabilities compared to traditional polling.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
