• Kalshi raised $185 million, achieving a $2 billion valuation.

  • Paradigm led the Series C, with Sequoia, Multicoin, and others.

  • Funds will expand tech and broker integrations for prediction markets.

  • Kalshi’s CFTC regulation sets it apart from rival Polymarket.

  • Trading volume hit $1.97B in 2024, driven by sports and elections.

Kalshi Raises $185M in Series C Funding

Kalshi, a leading prediction market platform, secured $185 million in a Series C funding round, valuing the company at $2 billion. The raise, announced on June 25, 2025, marks a significant milestone for the New York-based startup. This funding elevates Kalshi to unicorn status, reflecting strong investor confidence in its regulated event contract market.

The round was led by Paradigm, a venture capital firm focused on cryptocurrency and blockchain technologies. Other investors included Sequoia Capital, Multicoin Capital, Neo, Bond Capital, and Citadel Securities CEO Peng Zhao. Kalshi plans to use the funds to expand its technology team and integrate its contracts with additional brokerage platforms.

Expanding Technology and Market Reach

Kalshi’s platform allows users to trade on real-world event outcomes, such as elections, economic indicators, and sports. The company aims to enhance its technology infrastructure to support growing demand. Currently, its contracts are available on Robinhood and Webull, with plans to partner with more brokers.

The funding follows a surge in trading volume, particularly in sports and election markets. In March and April 2025, sports contracts accounted for 79% of Kalshi’s trading activity, according to Bloomberg Intelligence. The platform’s regulated status, authorized by the Commodity Futures Trading Commission (CFTC), sets it apart from competitors like Polymarket, which lacks U.S. regulatory approval.

Kalshi’s CEO, Tarek Mansour, emphasized the company’s growth potential, stating, “Our vision to make prediction markets mainstream is becoming reality, driven by our team’s dedication.” The funds will support new market structures and partnerships to broaden the platform’s appeal.

Regulatory Edge and Industry Competition

Unlike Polymarket, which reportedly raised $200 million at a $1 billion valuation, Kalshi operates legally in the U.S. under CFTC oversight. This regulatory advantage has fueled its rapid growth. In October 2024, a federal appeals court upheld Kalshi’s ability to offer political event contracts, dismissing CFTC objections. This ruling solidified its position as the only regulated prediction market in the U.S.

The company has faced challenges from state regulators, with nearly ten states issuing cease-and-desist orders over its sports contracts. Kalshi has responded with legal action, seeking injunctions to continue operations. Despite these hurdles, its trading volume reached $1.97 billion in 2024, a 1,220% increase from $183 million in 2023, per Sacra estimates.

Kalshi’s contracts, priced between 1 and 99 cents, reflect market probabilities for events. Correct predictions pay $1 per contract, offering a straightforward betting model. The platform charges transaction fees but does not profit from user losses, unlike traditional sportsbooks.

The company’s valuation surged from $787 million in late 2024, when it raised $50 million in equity and debt. Earlier, in 2021, Kalshi secured $30 million in a Series A round led by Sequoia Capital, with participation from Charles Schwab and Henry Kravis.


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