Kalshi

Kalshi Inc. is a US-based financial exchange offering event contracts. The platform, launched in July 2021, is the first federally regulated exchange for trading on real-world events and enables both retail and institutional investors to make wagers on diverse events spanning from economics and politics to entertainment and culture. History Founded in 2018, Kalshi was established by MIT alumni Tarek Mansour and Luana Lopes Lara. The idea for the company emerged during their tenure as financial analysts, where they identified challenges faced by investors attempting to hedge their investments amidst uncertainties such as the Brexit referendum. The founders note that the absence of a direct safeguard against unfavorable outcomes was what prompted them to envision a platform that would allow investors to engage in wagers on future events, providing a means to hedge uncertainties and capitalize on insights. After attempting for 18 months, Mansour and Lara obtained a federal license from the Commodities Futures Trading Commission (CFTC) on 3 November 2020, registering as a designated contract market and becoming the first federally regulated event-based trading exchange in the United States. Kalshi's case was strengthened by the presence of several prediction markets that operated without seeking regulatory approval, such as Polymarket and Augur. The name "Kalshi" signifies "everything" in Arabic, intended to reflect the platform's comprehensive approach to trading. Kalshi launched in July 2021 and processed $10 million in trades by December. The platform has garnered support from prominent investors like billionaires Charles Schwab and Henry Kravis, who have contributed $40 million to the company. The company has also received backing from Sequoia Capital, SV Angel, and Tinder co-founder Justin Mateen and was a part of Y Combinator’s Winter 2019 batch. Its board includes Alfred Lin. Since its launch, Kalshi has attracted millions of users. Numerous early adopters were avid followers of prediction markets, reportedly enticed away from similar platforms like PredictIt and Polymarket. In November 2021, the exchange saw approximately 1 million contracts in weekly trading volume, which grew to 2 million contracts per week in May 2022. As of April 2023, its monthly trading volume stands at around $10 million. In January 2023, Kalshi experienced a workforce reduction of approximately 25%, resulting from a combination of layoffs and voluntary resignations.