Sequoia backs crypto prediction platform Kalshi's $1b round

Kalshi has raised US$1 billion in a series E funding round, valuing the company at US$11 billion.

The round was led by Paradigm, with participation from Sequoia, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG, and Y Combinator.

The company weekly trading volumes now exceed US$1 billion, a sharp rise from 2024.

Kalshi plans to use the new funds to grow its user base, integrate with more brokerages, expand news partnerships, and develop new products.

The company claims millions of users access its platform weekly, and that it hosts more than 3,500 markets.

🔗 Source: Kalshi

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Implications, context, and why it matters.

Kalshi’s valuation hinges on shaky legal ground as states challenge federal preemption

Kalshi runs as a Commodity Futures Trading Commission (CFTC)-registered Designated Contract Market (DCM) and says federal preemption shields it from state gambling laws 1. Challenges are piling up.
A Nevada judge ordered Kalshi to halt sports contracts, saying its reading “upsets decades of federalism regarding gaming regulation” 2. Maryland rejected Commodity Exchange Act (CEA) preemption for state gambling laws, while New Jersey sided with Kalshi 1 3.
Nearly two dozen states and tribal gaming bodies filed suits to block the firm 2. Nevada’s Gaming Control Board vowed to “vigorously oppose” a stay and to “pursue a path through the courts to stop Kalshi’s unlawful conduct” 2. Legal analysts see a U.S. Supreme Court fight ahead, which leaves valuation and growth at risk 3.

Brokerage and exchange partners can embed Kalshi’s markets but should prepare for regulatory fragmentation

Kalshi provides a Representational State Transfer (REST) API and WebSocket streaming for market data and trade execution 4. Systems integrators say builds finish in 3–4 weeks and cut dev costs by 60–75% 5.
The company plugged into Robinhood, so users can reach its markets inside the Robinhood app 6. It also pursued Solana integrations (a high-throughput blockchain) with DeFi projects like DFlow (an order-flow protocol on Solana) and Jupiter (a Solana-based decentralized exchange aggregator) 7.
Fintech platforms and crypto exchanges face patchwork risk under the split rulings 1 2. They should weigh costs against the uncertainty, especially after DraftKings quit Nevada interests 2.