Kalshi Secures $1 Billion Funding Round, Valuation Soars to $11 Billion
Prediction-market platform Kalshi has raised a fresh $1 billion in new capital, doubling its valuation to $11 billion and marking one of the fastest growth streaks in the sector this year, according to a Nov. 20 report from TechCrunch.
The raise comes less than two months after Kalshi secured $300 million at a $5 billion valuation, underscoring surging investor demand for regulated event-trading platforms.
Investors Double Down
The latest round was led by returning backers Sequoia and CapitalG, both of which also participated in the previous funding. Other long-time supporters—Andreessen Horowitz, Paradigm, Anthos Capital, and Neo—also joined the round. None have publicly commented on the deal.
Kalshi’s rapid valuation jump places it in direct competition with rival Polymarket, which is reportedly seeking a valuation of $12–15 billion after an $8 billion raise earlier this year.
Explosive Growth Amid Rising Demand
Both Kalshi and Polymarket have seen unprecedented activity in 2024 and 2025, fueled largely by political prediction markets tied to major events, particularly the U.S. presidential election.
Kalshi’s traction skyrocketed after users correctly predicted the outcome of New York City’s mayoral race, boosting the platform’s visibility.
Kalshi reported reaching $50 billion in annualized trading volume in October—up dramatically from around $300 million last year.
Legal Challenges Persist
Despite winning a high-profile lawsuit against the Commodity Futures Trading Commission (CFTC)—granting Americans the right to trade on the platform—the company still faces pressure at the state level.
The most pressing challenge is in Massachusetts, where the Attorney General is seeking to block Kalshi’s sports-related markets. The company warns such a ruling could force the closure of $650 million in open positions, potentially disrupting the entire market.
Meanwhile, Polymarket—previously barred from serving U.S. users due to a 2022 CFTC settlement—has reentered the regulatory process by acquiring a derivatives exchange and a clearinghouse.
Institutional Partnerships Expand
In November, Kalshi announced several strategic integrations to broaden its reach:
- Prediction data integrated into Barchart, used by millions of retail and institutional investors.
- A new collectibles and sneaker-price prediction market through a StockX partnership.
- All USDC custody and payouts migrated to Coinbase Institutional, strengthening compliance and security.
A Sector Moving Toward the Mainstream
With major venture firms doubling down and trading volumes surging globally, investors increasingly see prediction markets as a fast-emerging financial category—despite regulatory uncertainty.
Kalshi’s massive fundraising round signals growing confidence that event-based trading could soon occupy a larger role in mainstream finance.
