Kalshi Hits $2B Valuation to Rival Polymarket in Prediction Market Race
Kalshi, a United States-based prediction market platform, has achieved a $2 billion valuation after raising a $185 million Series C and earning unicorn status alongside competitor Polymarket.
The funding round, announced by CEO Tarek Mansour in an X post on June 25, 2025, was led by Paradigm, with participation from Sequoia Capital, Multicoin, Peng Zhao, Neo, and Bond Capital, bringing Kalshi’s total funding to $415 million.
Founded in 2018, the platform is the only federally regulated prediction market in the United States, licensed by the Commodities Futures Trading Commission (CFTC) in November 2020. With a 2024 federal judge’s ruling and the CFTC’s May 2025 dismissal of an appeal against Kalshi’s political event contracts, its regulatory position was strengthened.
In July 2021, the prediction platform launched its trading market for diversified events, from economic indicators to weather outcomes, establishing itself as a key player in the prediction market sector.
New Funds Aim to Rival Polymarket’s Lead
The $185 million is expected to fund the expansion of Kalshi’s engineering team and the development of new market structures to improve the platform’s capabilities and compete with Polymarket.
Kalshi’s trading volume stands at $113 million across all open markets, compared to Polymarket’s $600 million in trading volume with approximately 186,000 active traders. Although the platform has more active markets compared to Polymarket, it falls behind in open interest, an important liquidity indicator.
Polymarket open interest (Source: Dune Analytics)
According to a recent report from Ecoinimist, Polymarket is reportedly close to a $200 million raise at a $1 billion valuation, led by Founders Fund.
Kalshi’s regulatory advantage, boosted by the appointment of Donald Trump Jr. as a strategic adviser in January 2025, gives it an advantage in the United States, where Polymarket faces regulatory difficulties.
CEO Tarek Mansour plans to integrate with more brokers to improve accessibility, ultimately pushing Kalshi for growth in a competitive market.
$2B Kalshi Valuation Signals Bright Future
The prediction market industry is seeing increasing growth due to its ability to provide real-time forecasts into future events.
Kalshi’s valuation surged from $787 million in its last round to $2 billion, a testament to strong investor confidence. The platform’s $415 million in total funding, alongside Polymarket’s potential $200 million raise, is proof of substantial capital inflow in the prediction market.
