a16z Crypto Leads $2.5 Million Round for Prediction Market Terminal Kairos

a16z crypto has led a $2.5 million funding round for Kairos, a Chicago-founded startup building a specialized trading terminal to consolidate liquidity across fragmented prediction markets.

The funding round included participation from proprietary trading firm Geneva Trading, the University of Illinois, and angel investors, Chief Executive Officer Jay Malavia confirmed in an interview. Malavia did not disclose the company’s valuation.

Kairos is building a terminal aimed at dedicated users who require unified order books, up-to-date news alerts, and faster market access. The platform currently integrates real-time trades from regulated exchange Kalshi and decentralized platform Polymarket, offering updates two to three seconds faster than the native Kalshi or Polymarket interfaces.

The startup’s launch comes following a surge in event contract trading during the 2024 presidential election cycle, which drove record volumes across decentralized networks and U.S. derivatives venues. However, trading remains fragmented across distinct platform architectures and regulatory jurisdictions.

Malavia and Chief Technology Officer Zayd Alzein, both in their early 20s and family friends who grew up near Chicago, conceived the product while working as colleagues at Cboe Global Markets. Drawing on their background at the exchange operator, the co-founders sought to bring advanced trading technology to the sector.

“There are not many times in history where you get an opportunity to shape an emerging industry,” said Malavia. “That’s what we’re building, and it really energizes us.”

Currently the company’s only employees, the co-founders plan to hire staff following the raise as they prepare for a private beta launch in the coming weeks. Kairos expects initial demand from sophisticated and professional prediction market traders, traditional finance workers trading recreationally, and crypto industry participants, before expanding to regular traders. The company aims to integrate several other exchanges soon.

The startup’s name is based on the Greek word kairos, which means the exact or critical time. “This is the opportune time to reshape an industry and give the power back to the people,” Malavia said. “In trading, it is all about the right time.”