Kalshi Raises $1 Billion at $11 Billion Valuation as Prediction Markets Boom

Prediction market platform Kalshi has closed a $1 billion funding round at an $11 billion valuation, more than doubling its worth in less than two months as the company rides a surge in mainstream adoption of event-based trading.

The round was led by returning investors Sequoia Capital and CapitalG, with participation from Andreessen Horowitz, Paradigm, Anthos Capital, and Neo, according to a person familiar with the deal, TechCrunch reported on Thursday. The fundraise comes just weeks after Kalshi announced a $300 million round at a $5 billion valuation in October.

The dramatic valuation jump reflects explosive growth in prediction markets following last year's presidential election. Kalshi's annualized trading volume reached $50 billion in mid-October, marking more than a thousandfold increase from approximately $300 million the prior year.

Kalshi allows users in over 140 countries to trade on events ranging from U.S. elections and film ratings to sports outcomes. The platform gained visibility with a high-profile marketing campaign during New York City's mayoral election earlier this month, purchasing subway ad space displaying live odds for the race between candidates.

The company is expanding beyond retail traders, onboarding banks and institutional investors with hundreds of millions in loan transactions expected this year. Loan pools cover areas including commercial real estate and aviation finance. Partners are integrating blockchain technology to tokenize loans, making assets traceable and tamper-resistant while improving transparency for investors viewing underlying loans on-chain.

Recent partnerships include StockX for sneaker and collectible markets, and Coinbase for USDC custody and payouts. Kalshi is also integrating prediction data into Barchart's platforms, expanding access for retail and institutional investors.

The capital injection strengthens Kalshi's balance sheet ahead of a planned IPO as the company continues international expansion. Co-founded by former hedge fund traders Tarek Mansour and Luana Lopes Lara, who met as MIT undergraduates, Kalshi successfully sued the Commodity Futures Trading Commission (CFTC) last year to secure Americans' right to use its platform. The company remains engaged in legal disputes with state regulators who claim its activities constitute illegal gambling.

Kalshi's main rival, Polymarket, was reportedly in talks last month to raise another round at a $12 billion to $15 billion valuation, weeks after closing a $1 billion round at an $8 billion pre-money valuation, according to Bloomberg.