Kalshi Secures $300m Funding; Tripled Valuation

Kalshi has raised $300 million in a new funding round, a move that boosts the prediction market company’s valuation from around $2 billion to $5 billion. CEO Tarek Mansour confirmed the investment in a LinkedIn post, putting to rest weeks of speculation over the size and participants of the round. The company, which allows users to trade contracts on future events, has increasingly positioned itself as a major competitor to traditional sports betting operators in the United States.

The fresh capital comes as competition in the prediction market sector intensifies. Earlier this week, Kalshi rival Polymarket received a $2 billion investment from the Intercontinental Exchange, lifting its valuation to roughly $9 billion. The rapid growth of these platforms reflects increased investor confidence in prediction markets as a hybrid between financial markets and entertainment, particularly as traditional sports betting operators face stagnating growth.

 

Category	Details
Company	Kalshi
Funding Raised	$300 million
New Valuation	$5 billion
Global Expansion	Accessible to 140+ countries
Key Investors	Sequoia Capital, Andreessen Horowitz, Paradigm, Coinbase, General Catalyst, CapitalG, Spark
Market Reaction	DraftKings shares fell 5%
Legal Status	Ongoing litigation in multiple U.S. states; regulatory scrutiny continues

Expansion Beyond the U.S.

In addition to raising significant capital, Kalshi confirmed plans to expand globally for the first time. Until now, the platform—regulated as a financial exchange by the Commodity Futures Trading Commission (CFTC)—was only available to U.S. users. Mansour announced that Kalshi will soon be accessible to users in more than 140 countries. This expansion reflects the company’s ambition to tap into a global audience for prediction contracts, which span topics from politics to sports and entertainment. Analysts note that international growth could help Kalshi diversify revenue streams, but it also introduces new regulatory challenges in markets where gambling and financial derivatives are tightly controlled.

The latest funding round attracted participation from 137 investors, underscoring broad market confidence. Sequoia Capital, which has backed Kalshi since its founding in 2020, was a key participant. New investor Andreessen Horowitz (a16z) also played a leading role, while other notable participants included Paradigm, Coinbase, General Catalyst, CapitalG, and Spark. The inclusion of major venture capital firms with deep experience in tech and finance signals that investors see prediction markets as a sector with significant growth potential.

Kalshi’s previous major funding round in June 2025 raised $185 million, pushing its valuation past $2 billion. The company has leveraged its investor base not just for capital but also for strategic guidance, including market expansion, technology development, and regulatory navigation.

The news of Kalshi’s latest raise coincided with a notable reaction in the stock market. Shares of sports betting operator DraftKings fell by more than 5% on the day of the announcement, reflecting investor concern over the potential competitive threat posed by prediction markets. This tension has grown in recent weeks: Kalshi recently introduced parlay-style sports contracts, which immediately impacted the valuations of DraftKings and Flutter (the parent company of FanDuel), cutting their combined market capitalization by roughly $7 billion. Analysts suggest that as prediction markets continue to innovate, they could disrupt traditional sports betting by offering alternative forms of user engagement and risk management.

Ongoing Legal and Regulatory Challenges

Despite its growth and increasing popularity among users, Kalshi continues to face significant legal uncertainty in the United States. When the company first launched sports contracts, it received cease-and-desist orders from regulators in multiple states. Kalshi has responded aggressively, seeking preliminary injunctions to continue operations while challenging state regulators in court.

While it has achieved tentative victories in New Jersey and Nevada, other legal battles have proven more difficult. A Maryland judge recently denied Kalshi’s injunction request, and the company has now filed a lawsuit against Ohio’s gambling regulator. On the same day as the new funding announcement, the Nevada Gaming Control Board requested documents from Kalshi regarding its communications with the CFTC, signaling ongoing regulatory scrutiny. These developments underscore that while Kalshi’s financial backing and user growth are robust, its long-term operational stability in the U.S. remains uncertain.

Kalshi’s growth is not only financial but cultural. The company has quickly gained mainstream attention since launching sports contracts earlier this year. Its presence in popular media, including a recent South Park episode, has amplified its visibility and brand recognition. CEO Tarek Mansour even used a still from the episode as his LinkedIn cover photo, highlighting the company’s willingness to embrace pop culture in building its profile.

 

Kalshi’s $300 million funding round triples its valuation to $5 billion and marks the company’s first expansion beyond the U.S., despite ongoing legal and regulatory challenges.

 

Outlook

Kalshi’s new funding and planned international expansion mark a significant step in the company’s evolution from a U.S.-only financial exchange to a global prediction market platform. While investor enthusiasm and user adoption remain high, legal and regulatory uncertainty in the United States continues to pose a potential risk to its operations. As Kalshi navigates expansion and competition, its trajectory will likely serve as a key test case for the broader prediction market industry, balancing rapid innovation against complex regulatory frameworks.

For now, Kalshi’s story reflects both strong growth potential and lingering uncertainty—highlighting the opportunities and challenges of pioneering new forms of financialized betting on real-world events.