Kalshi Raises $185 Million Valuation Hits $2 Billion

Kalshi, a prediction market startup, has successfully raised $185 million in a Series C funding round, achieving a valuation of $2 billion. This significant investment was led by Paradigm, a venture capital firm focused on cryptocurrency, with additional participation from Sequoia, Multicoin, Peng Zhao, Neo, and Bond Capital. The funds will be used to expand Kalshi's technology team and facilitate its integration with brokers, as the company continues to push deeper into the crypto market.

Kalshi's new valuation marks a substantial increase from its previous post-money valuation of $787 million in late 2024, when it raised $50 million in a private equity round. The startup's rapid growth and increasing market presence are evident in its recent achievements, including a $16 million event contract on the New York City mayoral primary outcome and the introduction of event contracts on U.S. congressional and other political races following a legal battle with the CFTC.

Kalshi's integration with ZeroHash, a cryptocurrency and stablecoin infrastructure provider, allows the platform to accept digital asset deposits, further solidifying its position in the crypto industry. The platform now supports four cryptocurrencies: Bitcoin, USDC, Worldcoin, and Solana. This move underscores Kalshi's commitment to leveraging blockchain technology to enhance its prediction market offerings.

The robust demand for prediction markets is reflected in Kalshi's success, with its election markets reaching a total volume of $875 million in November. This trend is part of a broader interest in event contracts, as traders increasingly seek opportunities to bet on various outcomes. Kalshi's ability to capitalize on this demand has positioned it as one of the fastest-growing companies in the prediction market space.

Kalshi's co-founder and CEO, Tarek Mansour, expressed excitement about the company's achievements, stating, "What once felt impossible now looks inevitable." He credited the team and community for making prediction markets mainstream and driving Kalshi's rapid growth. The company's latest funding round and strategic integrations are poised to further accelerate its expansion and innovation in the prediction market industry.