Kalshi has raised $185 million in a funding round led by crypto-focused venture capital firm Paradigm, boosting the company’s post-money valuation to $2 billion, according to representatives from both Kalshi and Paradigm.
“Prediction markets remind me of crypto 15 years ago: a new asset class on a path to trillions,” Matt Huang, co-founder and managing partner at Paradigm, told in an emailed statement. “There’s no better team than Kalshi to scale prediction markets and reshape how people think about everything from elections and economic markets to weather and sports.”
This news follows reports that Polymarket, the company’s largest yet regulation-challenged rival, is raising $200 million at an estimated $1 billion pre-money valuation, with Founders Fund leading the round. Sources say the deal remains unfinished, and Founders Fund has declined to comment.
Prediction markets leverage blockchain technology to let users wager on outcomes ranging from pop culture moments to political events.
Assuming Polymarket’s deal closes as reported, investors are paying a higher premium to back Kalshi than they are to back Polymarket.
The latest funding activity highlights growing investor confidence in blockchain-based prediction markets, despite ongoing regulatory scrutiny. As competition intensifies between players like Kalshi and Polymarket, valuation gaps reflect differing market positions, compliance strategies, and investor outlooks.
