Kalshi confirmed Wednesday that it has raised $185 million at a $2 billion valuation in a round led by Paradigm, with Sequoia and Bond Capital also participating.
It’s the latest sign of continued bullishness from VC investors on the future of online betting following the explosive rise of companies like DraftKings, Betr and FanDuel. Polymarket is close to raising $200 million in a round led by Founders Fund that would value the company at $1 billion, according to reports on Tuesday.
Both Kalshi and Polymarket let users bet on the outcome of political events like elections and appointments while also offering traditional sports betting. In 2024, both also became popular destinations for wagers on the US presidential election. (Users on both correctly predicted a Donald Trump victory.)
Yet, both companies are still facing difficult regulatory headwinds. Polymarket is not cleared to operate in the US as it is not registered with the Commodity Futures Trading Commission, though users have found workarounds using VPNs. Kalshi, while approved, has been sued by New Jersey and Nevada to cease operations in their states.
Featured image by Sean Gladwell/Getty Images
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