Kalshi secured $300m in fresh funding from Sequoia Capital and a16z. The round pushed the company’s value to roughly $5bn.
This isn’t Sequoia’s first bet on the platform. They backed Kalshi in an earlier round at a $2bn price tag.
The US-based company now operates across more than 140 countries. Its platform lets users trade “event contracts” on real-world outcomes—everything from economic data to political races. The CFTC regulates Kalshi’s operations, which sets it apart from decentralised competitors.
But the growth hasn’t come without friction. Nevada’s Gaming Control Board recently asked for documents after a court filing. And Polymarket’s CEO didn’t hold back, calling Kalshi a “copycat” of decentralised models.
Why This Funding Round Matters for Prediction Markets
The $50bn in annualised trading volume tells the story. Kalshi has built serious scale in a sector that’s still finding its footing.
Most prediction markets operate in gray areas. Kalshi’s CFTC approval gives it legal standing that others can’t match. That regulatory clarity matters to institutional players who won’t touch unregulated platforms.
The international push comes at the right time. Demand for event contracts keeps climbing. Kalshi’s model bridges prediction markets with traditional derivatives, it’s standardising how these events get priced and traded.
Competitors are circling, though. The Polymarket criticism highlights tension between regulated and decentralised approaches. Each side claims advantages the other can’t offer.
What Changes With Kalshi’s Global Expansion
The 140-country rollout creates a single liquidity pool. Users from different countries will trade in the same markets instead of fragmented regional pools.
Kalshi says this setup improves pricing and market depth. More participants means tighter spreads and better execution.
The platform already offered contracts on cultural moments. Earlier this year, they published odds on a Taylor Swift and Travis Kelce engagement. That kind of market draws casual users alongside serious traders.
The company maintains that CFTC oversight protects investors in ways unregulated platforms can’t. It’s a selling point for users who want recourse if something goes wrong.
How Competition Shapes the Sector’s Future
Polymarket’s pushback shows the stakes. Decentralised platforms argue they offer more freedom and lower costs. Kalshi counters with legal clarity and institutional trust.
The Nevada inquiry could set precedent. State gaming regulators are figuring out how prediction markets fit into existing frameworks. Their decisions will affect how companies like Kalshi operate.
Traditional finance is watching closely. Event contracts blur lines between gambling, derivatives, and information markets. If Kalshi succeeds at scale, expect banks and brokers to explore similar products.
The next 12 months will test whether regulated prediction markets can dominate a space that’s been largely unregulated. Kalshi’s betting they can.
