How Kalshi Defied Expectations to Dominate as a $2B Prediction Market Powerhouse
Prediction markets just got a $2 billion reality check—and Wall Street's sweating.
Kalshi didn't just enter the game; it rewrote the rules. While traditional finance clings to dusty models, this platform turned event-trading into a high-stakes sport for Main Street and hedge funds alike.
The secret? Cutting through regulatory red tape with the precision of a quant algo—while making volatility addictive as a meme stock.
Next-gen traders aren't betting on horses or elections anymore. They're pricing real-world outcomes like CPI prints and Fed decisions faster than Bloomberg terminals can refresh. And the house? It takes no position—just rakes in the vig.
Of course, some old-money bankers still call it 'gambling.' Meanwhile, Kalshi's users are too busy printing money to care.
TLDR
- Kalshi raised $185 million in funding led by Paradigm, valuing the prediction market company at $2 billion
- The company plans to use funds to expand its technology team and integrate with more brokerage platforms beyond current partners Robinhood and Webull
- Kalshi won a key court battle against the CFTC in 2024, allowing it to offer political event contracts in the US
- Sports betting now represents 79% of Kalshi’s trading volume as of March-April 2025
- The funding comes as competitor Polymarket reportedly seeks $200 million at a $1 billion valuation
Prediction market platform Kalshi has completed a $185 million funding round that values the company at $2 billion. The round was led by crypto investment firm Paradigm, with participation from Sequoia Capital, Multicoin Capital, and other investors.
I’m excited to announce our $185M Series C valuing Kalshi at $2B.
The round was led by Paradigm with participation from Sequoia, Multicoin, Peng Zhao, Neo, and Bond Capital.
People choose to work at Kalshi not because of the money we've raised, but because of our ambition:… pic.twitter.com/OGgZSwOPvj
— Tarek Mansour (@mansourtarek_) June 25, 2025
The New York-based startup allows users to place yes-or-no bets on future events ranging from political elections to sports outcomes. CEO and co-founder Tarek Mansour said the new capital will help scale the company’s technology team and expand broker integrations.
Kalshi currently offers its prediction contracts through partnerships with Robinhood Markets and Webull. Mansour stated that more than a dozen additional broker integrations are in development. The platform also operates its own direct trading website.
The funding represents a major milestone for the prediction market sector. Founded in 2018 by Mansour and Luana Lopes Lara, Kalshi had previously raised $156 million in total funding according to PitchBook data.
Regulatory Victory Opens New Markets
Kalshi’s growth accelerated after winning a court battle with the Commodity Futures Trading Commission in 2024. The legal victory allowed the company to offer political event contracts, which the CFTC had previously blocked.
The timing proved fortuitous as the November 2024 presidential election drove massive trading volumes. Users correctly predicted Donald Trump’s victory over Kamala Harris, even as traditional polls showed a close race.
In May 2025, the CFTC moved to dismiss its appeal of the court decision. This regulatory clarity has opened the door for political prediction markets to operate legally in the United States.
Sports Betting Drives Current Growth
Following the election, Kalshi pivoted heavily toward sports betting markets. Bloomberg Intelligence data shows that 79% of the platform’s trading volume in March and early April 2025 came from sports-related contracts.
This shift has created new regulatory challenges. State gambling regulators in Nevada and New Jersey have attempted to block Kalshi’s sports betting operations. They argue such activities should fall under state-level gambling regulation rather than federal oversight.
Kalshi has defended its position by citing its federal CFTC license. The company maintains this authorization allows it to offer sports event contracts across all 50 states.
The platform’s website currently features prediction markets on cryptocurrency prices, economic indicators, weather events, and ongoing news stories. Users can bet on outcomes ranging from NBA finals results to Oscar winners.
Kalshi faces competition from Polymarket, which reportedly seeks to raise $200 million at a $1 billion valuation. Unlike Kalshi, Polymarket lacks CFTC authorization and blocks American users to avoid regulatory issues.
The prediction market concept has struggled to gain mainstream adoption historically. Previous platforms like Intrade shut down in 2013 after failing to build sustainable businesses.
Kalshi’s investors believe current market conditions favor prediction platforms. The combination of improved regulatory clarity and younger investors comfortable with high-risk investments could drive broader adoption.
