Kalshi Raises $185M at $2B Valuation: Report

Kalshi, a prediction market and competitor to Polymarket, has reportedly closed a $185 million funding round that values the company at $2 billion, indicating growing investor appetite for the emerging sector.

The round was led by crypto investment company Paradigm, with participation from venture capital companies Sequoia Capital, Multicoin Capital and other investors, The Wall Street Journal reported on Wednesday.

CEO and co-founder Tarek Mansour said the funding will be used to expand Kalshi’s technology team and integrate its prediction contracts into more brokerage platforms. Currently, Kalshi contracts are available through Webull and Robinhood Markets.

Prediction markets have gained traction as an alternative to traditional polling, with proponents arguing that they offer more accurate forecasts by aggregating the collective expectations of participants.

Founded in 2018 by Mansour and Luana Lopes Lara, Kalshi previously raised a total of $156 million in capital, according to PitchBook.

Kalshi’s latest funding comes amid reports that its main competitor, Polymarket, is expected to close a $200 million round at a $1 billion valuation. A key distinction between the two is that Kalshi is federally regulated and authorized to operate in the United States, while Polymarket is not.

Related: Kalshi accepts Bitcoin deposits in bid to woo crypto-native users

Kalshi clears regulatory hurdle in CFTC dispute

Kalshi’s latest funding round follows key regulatory developments impacting its businesses.

In September 2024, the US Commodity Futures Trading Commission (CFTC) filed an appeal challenging a court decision that had allowed Kalshi to proceed with offering political event contracts.

The legal dispute centered on whether these contracts violated restrictions against gambling under federal commodities law. In May 2025, the CFTC moved to dismiss its appeal, clearing regulatory issues and potentially opening the door for the regulation of political prediction markets in the US.

Both Kalshi and Polymarket saw a surge in activity during the November 2024 US presidential election, offering a stress test that helped validate the appeal of prediction markets.

On Kalshi’s website, users can make predictions on topics from cryptocurrency and economics to the weather and ongoing events. According to Bloomberg Intelligence data, 79% of Kalshi’s trading volume in March and early April came from the sports category. Kalshi has also battled with state regulators over its sports prediction contracts.

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