How Kalshi Beat the Odds to Become a $2 Billion Prediction Market Giant

Kalshi raised $185 million in funding led by Paradigm, valuing the prediction market company at $2 billion. The company plans to use funds to expand its technology team and integrate with more brokerage platforms beyond current partners Robinhood and Webull. Kalshi won a crucial court battle against the CFTC in 2024, allowing it to offer political event contracts in the US. Sports betting now represents 79% of Kalshi’s trading volume as of March-April 2025. The funding comes as rival Polymarket reportedly seeks $200 million at a $1 billion valuation. Prediction market platform Kalshi has completed a $185 million financing round that values the company at $2 billion. Unlike Kalshi, Polymarket lacks CFTC approval and blocks American users to avoid regulatory issues. The prediction market concept has struggled to gain mainstream adoption historically. The combination of improved regulatory clarity and younger investors comfortable with high-risk investments could drive more widespread adoption.