Kalshi raises $185 million in latest funding round, hitting $2b valuation
Prediction market Kalshi has raised $185 million in its latest funding round, hitting a company valuation of $2 billion at the same time.
“It’s a vote of confidence in what this product and this community can become,” said Kalshi in the announcement of the funding. “More importantly, it’s a sign that prediction markets, and the event contacts that power them, are no longer just a fringe experiment. They’re a safe, credible, liquid asset class, and Kalshi is leading the way.”
The latest cash influx comes three years after Kalshi’s last round and is led by crypto VC firm Paradigm, with participation from Sequoian, Multicoin, Neo, BOND capital, and Citadel Securities CEO Peng Zhao. It’s been a lucrative week in the world of prediction markets, with Kalshi’s biggest competitor Polymarket also reportedly raising $200 million in an approximate $1 billion company valuation headed up by Founders Fund, although that deal is not yet publicly finalized.,
The lower valuation could be due to Polymarket’s ban in the US since 2022, as well as restrictions in the United Kingdom, France, Ontario, Singapore, Poland, Thailand, Belgium, and Taiwan. With Kalshi able to operate where Polymarket can’t, the former is coming out on top both operationally and seemingly financially.
What are prediction markets like Kalshi?Prediction markets like giants Kalshi and Polymarket use blockchain technology to offer bets on a wide range of bets across pop culture to politics. Calls for prediction markets to be regulated have come from major organizations, including both the NBA and MLB, putting pressure on regulators to take action.
Kalshi’s resolution with the Commodity Futures Trading Commission (CFTC) seems to have helped it take a position at the top of the market, as well as allow US residents to freely use the site and its gaming options.
That’s not to say that Polymarket doesn’t have any support, with billionaire Elon Musk’s social media platform X reportedly partnering to make Polymarket X’s ‘official’ prediction market. What this means in practice remains to be seen, with regulatory issues still in play.
Featured image: Midjourney
The post Kalshi raises $185 million in latest funding round, hitting $2b valuation appeared first on ReadWrite.