Prediction Market Kalshi Hits $11 Billion Valuation

Prediction market platform Kalshi has secured $1 billion in fresh funding, pushing its valuation to $11 billion.

The move comes amid the rapid integration of prediction platforms into the mainstream. Users flock to these sites to wager on everything from elections and crypto prices to even daily temperature readings.

Kalshi Hits $11 Billion Valuation After Record Latest Round

Kalshi’s latest capital raise comes less than two months after the company secured $300 million at a $5 billion valuation. Citing people familiar with the matter, TechCrunch reported that the newest round was led by both previous backers and new investors.

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The returning investors included Sequoia and CapitalG. Andreessen Horowitz, Paradigm, Anthos Capital, and Neo joined them. Meanwhile, rival platform Polymarket is pursuing its own ambitious funding, targeting a $12 billion valuation.

Kalshi has emerged as the leading prediction platform, overtaking Polymarket in September. However, the dominance has been recently challenged by Opinion.

Dune Analytics data showed that the platform recorded a weekly notional volume of $1.46 billion. This was slightly higher than Kalshi’s $1.2 billion, while Polymarket trailed behind with less than $1 billion.

Still, Kalshi has continued to expand its presence. The platform now serves users in over 140 countries. According to the official data tracker, Kalshi’s cumulative transactions stand at over 68.4 million, with a cumulative trading volume exceeding $17 billion.

Additionally, prediction markets continue to gain mainstream visibility, further bolstered by Google’s latest move. Google Finance has integrated real-time data from both Kalshi and Polymarket, marking a notable step in bringing event-based trading to a wider audience.

Despite this growth, Kalshi faces escalating legal challenges. The platform operates as a federally regulated Designated Contract Market under the Commodity Futures Trading Commission.

“Kalshi is regulated by the Commodity Futures Trading Commission (CFTC) – an independent agency of the US government that has regulated US derivatives markets since 1974 and is overseen by Congress,” the firm noted.

Nonetheless, issues are emerging at the state level. In Massachusetts, the attorney general filed a lawsuit in September aiming to stop the company from offering its sports-related prediction products within the state.

In Nevada, US District Court Judge Andrew Gordon has indicated that he may reconsider his April ruling of granting Kalshi a preliminary injunction against the state’s enforcement of gambling laws. Maryland regulators have denied the platform’s request for a preliminary injunction.

Lastly, in New York, the company has taken the offensive, filing a lawsuit to prevent the state’s gaming commission from classifying its sports prediction markets as illegal gambling.