Silicon Valley betting platform Kalshi has completed a Sequoia Capital-led $ 30 million Series A financing round that included Charles Schwab, Henry Kravis, SV Angel and previous investors such as Neo and YC Continuity.
“The universe of that which has financial value is growing rapidly. Markets for information, digital assets and even sneakers are becoming just as valuable as old markets for commodities like oil, grain and gold, "said Tarek Mansour, co-founder and CEO of Kalshi, all in one Press release on Wednesday (February 17th). “It is clear that the futures markets have some catching up to do. That is why Kalshi will be offering event contracts as a new type of asset class that covers a wide range of topics. These contracts are becoming a powerful tool in the toolkit of modern investors, ”he added.
Kalshi is the first nationwide regulated betting platform that trades on event outcomes, the company said. The new financing coincides with Kalshi's approval by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM). Kalshi is one of the 16 DCMs in the USA.
The funds will be used to bring the platform live and enable trading in event contracts that are "structured as questions about future events," the company said in the press release. Investors can bet "yes" or "no" contracts depending on what they think will happen, the press release said.
The startup was founded in 2018 by Mansour and Luana Lopes Lara, who jointly recognized the opportunity to develop an event-driven asset class for retail investors. They sought federal regulation and founded a company with in-depth financial expertise and technical skills.
“Investing is about putting money behind your mind about what will happen in the future. However, traditional assets such as stocks do not offer any direct risk to event outcomes, "said Lopes Lara, Co-Founder and COO." Kalshi solves this problem by allowing investors to remove all other noises affecting the price of assets and isolate trading the event itself. "
The company plans to bring its exchange to the public next month and has a waiting list in the meantime.
The Gamification the exchange was spurred on by the recent Robinhood trading frenzy sparked by a Reddit forum. Robinhood tried to improve investment conditions on the stock market.
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