Kalshi Soars to 11B Valuation after Major Funding Round
- Kalshi grows fast and lifts its value after strong trading across many global markets.
- New rounds bring wide support as more users trade events in sports, politics, and culture.
- Rival platforms expand into the United States as rules shift and new firms enter.
Kalshi reached an $11 billion valuation after closing a $1 billion fundraising round led by Sequoia and CapitalG. The valuation more than doubled in just over a month as the prediction markets industry attracts major investors. The company continues to grow after winning a court battle that allowed it to list contracts tied to the U.S. presidential race.
Rapid Growth Fuels Investor Interest
Kalshi declined to comment on the round. Yet the deal follows a $300 million raise in October that valued the company at $5 billion. Polymarket, a sector rival, also reportedly pursued a round between $12 billion and $15 billion last month.
The industry is expanding as more traders enter political, sports, economic, and entertainment markets. Robinhood launched a prediction markets hub in March, while Intercontinental Exchange announced plans in October to invest up to $2 billion in Polymarket.
Kalshi now serves users from more than 140 countries. People trade on events ranging from political outcomes to sports results and film ratings. The platform recently reached $50 billion in annualized transaction volume, rising from $300 million the year before.
The sector continues attracting new entrants. Clearing Co. raised a $15 million seed round to compete with established platforms. Polymarket previously faced CFTC restrictions and was barred from serving U.S. residents in 2022. It acquired a derivatives exchange and a clearinghouse this year, which helped secure approval to reenter the U.S. market.
Expansion Into Institutional Markets
Kalshi is also broadening its reach beyond retail traders. It now works with banks and institutional investors. Hundreds of millions in loan transactions are expected this year. These loan pools span commercial real estate and aviation finance.
Partners use blockchain systems to tokenize loans. This approach makes assets traceable and tamper-resistant. It also improves transparency for investors who want to view underlying loans on-chain.
The company announced several partnerships this year. StockX now supports sneaker and collectible markets. Coinbase manages USDC custody and payouts for Kalshi users. Barchart integrates Kalshi’s prediction data across its analytics platforms. These integrations widen access for retail and institutional traders.
Kalshi reached $50 billion in annualized trading volume by mid-October, according to the New York Times. That figure represents a more than thousandfold jump from last year.
Related: Kalshi Partners With RedStone to Take Prediction Markets On-Chain
Ongoing Regulatory Battles
Kalshi was co-founded by former hedge fund traders Tarek Mansour and Luana Lopes Lara. They met at MIT while studying computer science and mathematics. The company gained national attention after successfully suing the Commodity Futures Trading Commission last year. The court ruling allowed Americans to access the platform.
Yet Kalshi still faces legal battles. Several state regulators claim its activities violate gambling laws. These disputes continue as the company prepares for international expansion and a future IPO.
Prediction markets remain controversial as they operate between financial products and gambling structures. This raises a critical question: how will regulators shape the future of event-based trading platforms?
