Kalshi Hits $2 Billion Valuation as Prediction Markets Go Mainstream

Kalshi, the fast-growing prediction market platform, has raised $185 million in a Series C funding round led by crypto-focused venture firm Paradigm, pushing its valuation to $2 billion and solidifying its status as a unicorn. The company says it will use the capital to expand broker integrations, scale operations, and continue its push into the crypto ecosystem.

Other major backers include Sequoia Capital, Multicoin Capital, Neo, Bond Capital, and Citadel Securities CEO Peng Zhao.
Kalshi now allows bets on a wide range of yes/no outcomes — from political races and weather events to the NBA Finals and the Oscars.

“What once felt impossible now looks inevitable,” CEO Tarek Mansour wrote on X. “Today, we celebrate taking prediction markets mainstream.”

Election Momentum, Crypto Integration

Kalshi surged in popularity during the 2024 US presidential election, reportedly clearing $875 million in total market volume in November. By contrast, rival Polymarket drew over $3 billion in presidential bets — but remains unavailable to US users due to lack of regulatory approval.

Kalshi, however, gained CFTC approval last year after a prolonged legal battle, allowing it to offer contracts on real political events like congressional races and mayoral primaries. It recently facilitated over $16 million in bets on the NYC mayoral primary.

The company is also deepening its crypto ambitions:

Partnered with ZeroHash to support digital asset deposits.
Users can now fund accounts with Bitcoin, USDC, Solana, and Worldcoin.
The crypto-native infrastructure aims to accelerate liquidity and user onboarding in global markets.

Betting vs. Gambling Debate

Kalshi’s rise reignites the debate over event contracts. Advocates argue they outperform polls in predicting real-world outcomes because traders put money behind their beliefs. Critics, however, say such platforms operate as “backdoor gambling”.

Still, investor interest is surging. Polymarket is reportedly close to raising nearly $200 million at a $1B+ valuation, according to Reuters and The Information.

The Big Picture

As public trust in mainstream polling and media declines, prediction markets are stepping in to fill the vacuum. With robust user engagement, regulatory traction, and strong crypto integration, Kalshi now stands at the forefront of a rapidly maturing industry.