Latest news with #predictionMarket
Yahoo
26-06-2025
- Business
- Yahoo
‘Betting' site Kalshi, which predicted both Trump and Mamdani's wins, parlays $2 billion valuation
Kalshi, the prediction market and financial exchange platform that correctly predicted the outcome of the 2024 presidential election and recent New York mayoral primary, said it reached a $2 billion valuation on Wednesday following its latest funding round. The website, which functions more like a financial market than a traditional gambling website, allows users to buy into event contracts through 'yes' or 'no' questions. It's regulated by the Commodity Futures Trading Commission, allowing it to function in states where sports betting is banned. Kalshi skyrocketed to popularity this past year after its platform correctly predicted President Donald Trump would win over former vice president Kamala Harris — even when traditional polling had the two candidates neck-in-neck. Most recently, Kalshi's website correctly predicted hours before polls closed that Zohran Mamdani, the New York City primary candidate, would beat former governor Andrew Cuomo for the Democratic nomination. In its latest round of funding, Kalshi said it raised $185 million from investors, led by the venture capital firm Paradigm. Other investors included Peng Zhao, the CEO of Citadel Securities; Sequoia Capital, a venture capital firm; and Multicoin Capital, a crypto investment company, according to the Wall Street Journal. Calling it 'one of the fastest growing companies in America,' Kalshi CEO and co-founder Tarek Mansour told CNBC that its growth cements its trajectory to becoming a leading financial market. 'We always thought the mission of the company [is] the idea of building the most important financial market on the planet,' Mansour said. Investments in Kalshi come less than a year after it won a lawsuit against the Commodity Futures Trading Commission that now allows it to list contracts on the outcome of elections — something that has historically been outlawed. Mansour said it was their goal to create a financial market 'that could price anything' from elections to Academy Award predictions to sports outcomes. Kalshi and other betting markets have become a popular way for people to bet on the outcome of events, bypassing traditional gambling regulations. But the method of so-called 'backdoor gambling' has left lawmakers and regulators skeptical. "These contracts are a backdoor attempt to bring gambling into financial markets," Cantrell Dumas, the director of derivatives policy at Better Markets, a non-profit group that advocates for a safer financial market system, told Reuters. Three former government officials raised alarm bells about betting markets in October, warning Americans not to get too comfortable with them, given that there is little historical accuracy or precedent. Mansour acknowledged that Kalshi could serve as a powerful tool for the public to gauge the predictability of political events, but he said it should still not replace traditional polling. He reminded people that even in the recent New York City mayoral primary, there was 'volatility.'
The Independent
26-06-2025
- Business
- The Independent
‘Betting' site Kalshi, which predicted both Trump and Mamdani's wins, parlays $2 billion valuation
Kalshi, the prediction market and financial exchange platform that correctly predicted the outcome of the 2024 presidential election and recent New York mayoral primary, said it reached a $2 billion valuation on Wednesday following its latest funding round. The website, which functions more like a financial market than a traditional gambling website, allows users to buy into event contracts through 'yes' or 'no' questions. It's regulated by the Commodity Futures Trading Commission, allowing it to function in states where sports betting is banned. Kalshi skyrocketed to popularity this past year after its platform correctly predicted President Donald Trump would win over former vice president Kamala Harris — even when traditional polling had the two candidates neck-in-neck. Most recently, Kalshi's website correctly predicted hours before polls closed that Zohran Mamdani, the New York City primary candidate, would beat former governor Andrew Cuomo for the Democratic nomination. In its latest round of funding, Kalshi said it raised $185 million from investors, led by the venture capital firm Paradigm. Other investors included Peng Zhao, the CEO of Citadel Securities; Sequoia Capital, a venture capital firm; and Multicoin Capital, a crypto investment company, according to the Wall Street Journal. Calling it 'one of the fastest growing companies in America,' Kalshi CEO and co-founder Tarek Mansour told CNBC that its growth cements its trajectory to becoming a leading financial market. 'We always thought the mission of the company [is] the idea of building the most important financial market on the planet,' Mansour said. Investments in Kalshi come less than a year after it won a lawsuit against the Commodity Futures Trading Commission that now allows it to list contracts on the outcome of elections — something that has historically been outlawed. Mansour said it was their goal to create a financial market 'that could price anything' from elections to Academy Award predictions to sports outcomes. Kalshi and other betting markets have become a popular way for people to bet on the outcome of events, bypassing traditional gambling regulations. But the method of so-called 'backdoor gambling' has left lawmakers and regulators skeptical. "These contracts are a backdoor attempt to bring gambling into financial markets," Cantrell Dumas, the director of derivatives policy at Better Markets, a non-profit group that advocates for a safer financial market system, told Reuters. Three former government officials raised alarm bells about betting markets in October, warning Americans not to get too comfortable with them, given that there is little historical accuracy or precedent. Mansour acknowledged that Kalshi could serve as a powerful tool for the public to gauge the predictability of political events, but he said it should still not replace traditional polling. He reminded people that even in the recent New York City mayoral primary, there was 'volatility.'
Wall Street Journal
25-06-2025
- Business
- Wall Street Journal
Prediction Market Kalshi Hits $2 Billion Valuation in New Funding Round
Kalshi, a startup prediction market that became a popular way to bet on the November election, said Wednesday that it had been valued at $2 billion in a new funding round, a vote of confidence in its business of facilitating wagers on future events. The details
Bloomberg
25-06-2025
- Business
- Bloomberg
Paradigm to Invest in Prediction Market Kalshi at More Than $1 Billion Value
Kalshi Inc., a prediction market that competes with Polymarket, is raising more than $100 million at a valuation that exceeds $1 billion, according to people familiar with the matter. Paradigm, a venture capital firm focused on cryptocurrency investments, is leading the deal, the people said. Kalshi is similar to Polymarket, which also is completing an investment at a valuation of more than $1 billion. While Kalshi is federally regulated and cleared to operate in the US, Polymarket is not registered with the Commodity Futures Trading Commission and its service is banned for Americans. A Paradigm representative declined to comment. A spokesperson for Kalshi didn't respond to a request for comment.
CNA
24-06-2025
- Business
- CNA
Polymarket nears Founders Fund-led funding at over $1 billion valuation, source says
Polymarket is close to raising $200 million in a funding round that values the world's biggest prediction market at more than $1 billion, a person familiar with the matter told Reuters on Tuesday. Billionaire Peter Thiel's Founders Fund, an existing investor, is set to lead the round, the person added, requesting anonymity to discuss confidential information. Founded in 2020 by Chief Executive Shayne Coplan, Polymarket has helped popularize event derivatives trading, which involves buying and selling contracts tied to real-world events such as elections, economic data releases or policy decisions. Unlike traditional betting, traders buy and sell shares linked to specific outcomes, with prices for opposing sides together totaling $1. These relatively new and high-risk instruments gained momentum ahead of the 2024 U.S. presidential election, as trading volumes on platforms like Polymarket surged. Polymarket allows users to place bets using cryptocurrency on real-world events. The platform does not currently allow U.S.-based users to trade, in line with guidance from the Commodity Futures Trading Commission. Proponents argue that event derivatives offer a more accurate way to forecast real-world outcomes by harnessing the collective intelligence of traders with financial stakes in their predictions. During the 2024 U.S. presidential election, contracts on Polymarket predicting a Republican sweep surged, even as most traditional media outlets and polls favored Democrat Kamala Harris. Current markets on the platform include questions about whether the Iranian regime will fall this year, if Iran will close the Strait of Hormuz before July, and the likelihood of a U.S. recession in 2025. Polymarket's competitors in the growing event-driven trading space include PredictIt and Kalshi.
