Kalshi has secured $185m in Series C funding, pushing its post-money valuation to $2bn. The news comes almost simultaneously with a similar announcement this week by Polymarket.
The funding round was led by crypto-focused investment firm Paradigm and included backing from top-tier investors such as Sequoia Capital, Multicoin Capital, Neo, Bond Capital, and Citadel Securities CEO Peng Zhao.
It marks Kalshi’s largest capital raise to date and positions the platform to scale aggressively in a fast-evolving event-based forecasting industry.
According to the company, the capital will be used to significantly expand Kalshi’s engineering and infrastructure capabilities and strengthen integrations with online brokers, including existing partnerships with Robinhood and Webull.
It will also be able to roll out new market formats to broaden the platform’s appeal to both retail and institutional investors.
Kalshi holds a unique position in the US financial ecosystem as the only prediction market provider authorised by the Commodity Futures Trading Commission (CFTC).
Operating under a Designated Contract Market (DCM) licence, it offers regulated contracts that allow traders to take positions on the outcome of real-world events.
A pivotal US federal court ruling in late 2024 reaffirmed Kalshi’s right to list contracts on political outcomes, a move that unlocked broader potential for contracts involving public events.
Following this decision, Kalshi has expanded rapidly beyond its initial political focus into economic indicators, entertainment events, and especially sports.
As of mid-2025, reports suggested sports markets accounted for nearly 80% of Kalshi’s trading volume, reflecting growing user interest in non-political event contracts.
The company’s expansion into sports forecasting coincides with the increasing acceptance of prediction markets as legitimate financial instruments rather than speculative tools.
Investors watching Kalshi legal battles
Despite federal approval, Kalshi continues to navigate complex legal territory.
Several state-level gaming commissions argue that prediction markets may fall under intrastate gambling statutes, raising the possibility of enforcement conflicts.
Kalshi defends its operations under federal preemption, maintaining that its CFTC licence supersedes individual state gambling laws.
To reinforce its regulatory standing, Kalshi has reportedly engaged in dialogue with both state authorities and the federal government to clarify jurisdictional boundaries.
The company is also investing in educational initiatives to distinguish its markets from unregulated betting platforms, emphasising their utility for hedging and information aggregation.
The company’s path toward regulatory legitimacy stands in contrast to other players in the prediction market space.
While Kalshi’s centralised and compliant model is appealing to mainstream financial institutions, it is not without risks — particularly given the possibility of future changes in federal oversight or adverse state-level rulings.
Meanwhile, Polymarket, a decentralised prediction platform built on Ethereum and Polygon, just announced that it is nearing the close of a funding round reportedly worth $200m, led by Peter Thiel’s Founders Fund.
This raise is expected to value Polymarket at over $1bn, marking its entry into unicorn territory.
Despite regulatory limitations, Polymarket continues to post strong trading volumes and remains a major player in global decentralised forecasting.