Prediction Markets See $400M Funding Surge as Kalshi and Polymarket Secure Major Rounds

Prediction markets are undergoing a seismic shift from niche experimentation to mainstream financial infrastructure, underscored by nearly $400 million in fresh funding across two industry leaders. Kalshi's $185 million Series C at a $2 billion valuation and Polymarket's impending $200 million round signal institutional conviction in the asset class.

Paradigm's Matt Huang likened prediction markets' trajectory to crypto's early days, calling them "a new asset class on a path to trillions." The participation of traditional finance heavyweights like Citadel Securities alongside crypto-native investors suggests converging validation from both worlds.

Kalshi's regulated approach contrasts with Polymarket's crypto-native model, creating parallel growth paths for prediction markets. The funding influx arrives as these platforms evolve beyond speculative tools into instruments for hedging real-world risks.