Prediction market startup Kalshi hits $2B valuation with $185M raise led by Paradigm

Kalshi, the prediction market platform where users trade on real-world events, has landed a $185 million funding round, pushing its valuation to $2 billion. CEO Tarek Mansour shared the news on X on Wednesday.

The round was led by Paradigm, a crypto-focused investment firm. Other backers include Sequoia Capital, Multicoin, Neo, Bond Capital, and Citadel Securities CEO Peng Zhao.

“I’m excited to announce our $185M Series C valuing Kalshi at $2B. The round was led by Paradigm with participation from Sequoia, Multicoin, Peng Zhao, Neo, and Bond Capital,” Mansour said on X.

Kalshi Raises $185M at  $2B Valuation to Bet on the Future of Prediction Markets

The funding comes just two days after Polymarket, the world’s biggest prediction market, is reportedly close to raising $200 million at a valuation of over $1 billion. The fundraise is a sign that the prediction market is heating up as investors pour money into platforms turning public opinion into tradable contracts.

Kalshi lets people place financial bets on outcomes across politics, economics, sports, and entertainment. Its event contracts have seen a surge in activity since last year’s U.S. presidential election, drawing attention—and scrutiny—from both traders and regulators.

Supporters argue that these markets produce better predictions than traditional polling, since traders have skin in the game. Critics call it legalized gambling in disguise, something Kalshi strongly rejects.

Founded in 2018 by MIT classmates Tarek Mansour and Luana Lopes Lara, Kalshi has had its share of legal battles. Last year, it successfully challenged the Commodity Futures Trading Commission in court and won the right to offer contracts tied to the presidential election, Reuters reported.

Kalshi isn’t just riding a trend—it’s staking a claim in a category that’s attracting serious money and attention, even as debates over its legality continue to swirl.