Kalshi
Overview
Kalshi Inc. is an American financial exchange and prediction market based in New York City. Founded in 2018 by Tarek Mansour and Luana Lopes Lara, Kalshi allows users to trade on the outcome of future events. With a CFTC (Commodity Futures Trading Commission) license, Kalshi is a regulated platform, enabling trades on event contracts. It has raised $415 million in total funding, including a $185 million round in June 2025, which valued the company at $2 billion. Kalshi's platform offers a range of markets, including political, economic, and sports events.
Recent Developments
- June 2025: Kalshi closed a $185 million funding round led by Paradigm, elevating its valuation to $2 billion. This round also saw participation from investment giants like Sequoia Capital and Citadel Securities CEO Peng Zhao, underscoring significant confidence in Kalshi’s position in prediction markets (TechCrunch).
- March 2025: Kalshi partnered with Robinhood to launch prediction markets for sports and policy outcomes. This partnership is expected to enhance Kalshi’s user engagement and expand its market reach (Axios).
- May 2025: The CFTC dropped its appeal against Kalshi, clearing regulatory hurdles that previously questioned Kalshi’s federal compliance concerning political prediction markets. This marks a significant legal victory allowing broader market operations (CoinDesk).
- April 2025: Kalshi engaged legally against multiple state gaming regulators who've issued cease-and-desist orders, arguing that such state laws do not encompass federally regulated platforms like Kalshi (Bloomberg).
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2018 |
| Headquarters | New York City, NY, USA |
| Founders | Tarek Mansour, Luana Lopes Lara |
| Revenue | Not Publicly Disclosed |
| Profits | Not Publicly Disclosed |
| Key Investors | Paradigm, Sequoia Capital, Multicoin Capital |
| Industry | Financial Services, Prediction Markets |
| Number of Employees | Over 8,000 (as per public databases) |
Early History
Kalshi was conceived by Mansour and Lara while they were students at MIT, driven by a shared insight into financial markets' gap where trading directly on event outcomes was not possible. After founding Kalshi in 2018, they entered Y Combinator in 2019 to gain initial traction. Their work culminated in receiving a federal license from the CFTC in 2020, allowing them to operate legally within the regulatory framework of financial markets, a major milestone that set them apart from many unregulated competitors.
Company Profile and Achievements
Kalshi operates under a centralized exchange model approved by the CFTC, providing event-based contracts that allow users to bet on yes-or-no questions. Their business model relies on transaction fees rather than speculative losses, distinguishing them in the market.
- 2020: Achieved CFTC approval, establishing itself as a legal platform for event contracts.
- 2021: Officially launched its trading platform post-regulatory approval.
- 2022-2024: Rapid expansion into multiple event types, including political, economic, and newly added sports markets.
- 2025: Expanded technological integrations with major trading platforms, leveraging its federal compliance to streamline new offers (Kalshi Official Website).
Current Operations and Market Position
Kalshi continues to solidify its market presence by expanding its technological footprint through partnerships and improved contract types, covering diversified markets such as sports, weather, politics, and economics. Federally regulated, it remains competitive against platforms like Polymarket by maintaining compliance and expanding user accessibility.
Is Kalshi Legit
Kalshi stands out due to its distinction as a federally regulated prediction market. As the first and only exchange sanctioned by the CFTC for such contracts, it maintains operational transparency, adheres to strict legal frameworks, and focuses on compliance as its core operational ethos.
Is Kalshi Safe
Kalshi offers a secure trading environment with SOC 2 Type II compliance, employing SSL encryption and rigorous account protections. Its stringent regulatory adherence further ensures transactional and user data safety, upholding its reputation within the fintech industry.
Conclusion
Kalshi has emerged as a pioneering entity in the prediction markets space, leveraging regulatory compliance to establish a robust and expanding platform. With significant investments and a broadened market scope, it positions itself as a real-time insights tool for economic, political, and social forecasting. Future trajectories seem promising, as the company continues to court institutional support while innovating within its federally regulated mandate.