Kalshi, a Silicon Valley-based online exchange that lets users trade on the outcome of real-world events, has raised $30 million in a Series A funding round led by Sequoia Capital.
The round was joined by Charles Schwab of Charles Schwab Corporation, Henry Kravis, the co-CEO of KKR, SV Angel, and previous investors including Neo and YC Continuity.
The money comes on the heels of the CFTC approving Kalshi as a Designated Contract Market (DCM) in November, paving the way for it to launch the platform.
Kalshi will offer a unique asset class: event contracts. Investors buy either "Yes" or "No" contracts based on whether they think the event will happen or not, allowing them to hedge everyday risks and capitalise on their opinions. A waitlist programme is currently operating.
Tarek Mansour, CEO, Kalshi, says: “The universe of what has financial value is expanding rapidly. Markets for information, digital assets and even sneakers are becoming just as valuable as legacy markets for commodities, such as oil, crops and gold.
“It’s clear that derivatives markets have some catching up to do, which is why Kalshi will offer event contracts as a novel asset class that covers a broad range of topics. These contracts will become a powerful instrument in the modern investor’s toolkit.”