Prediction Market Kalshi Hits $11 Billion Valuation in New Funding Round
The company says it is continuing to grow amid a surge in popularity in prediction markets
- Kalshi, a prediction market platform, raised $1 billion at an $11 billion valuation in its third funding round this year.
- Kalshi’s trading volumes now exceed $1 billion weekly, with plans to expand consumer adoption and product offerings.
- Prediction markets are gaining popularity, offering bets on various events, including sports.
Investors are betting on the continued popularity of prediction markets.
Kalshi, one of the biggest players in the sector, said Tuesday it has raised $1 billion at an $11 billion valuation, in its third round of capital funding this year.
The round was led by the investment firm Paradigm, an existing backer, and also includes Sequoia Capital, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG and Y Combinator.
New York-based Kalshi offers a variety of yes-or-no contracts that allow users to bet on real-world events ranging from hurricanes to the National Basketball Association finals to the Oscars. The app surged in popularity on bets ahead of last November’s election.
The company said it is continuing to grow, with trading volumes now surpassing $1 billion every week. It plans to use its most recent funding to further accelerate consumer adoption, integrate more brokerages, strike news partnerships and broaden its product offerings.
“Kalshi is replacing debate, subjectivity, and talk with markets, accuracy, and truth,” Chief Executive Tarek Mansour said. “We have created a new way of consuming and engaging with information. It’s hard to have an opinion about the future today without thinking about Kalshi.”
Prediction markets such as Kalshi and rival Polymarket, allow users to bet on yes-or-no questions about future events, such as elections. They have surged in popularity, with a further boost after a federal court last year threw out a Commodity Futures Trading Commission prohibition on election betting.
Since then, prediction markets have begun offering sports wagers, encroaching on the turf of traditional sportsbooks and prompting court battles with state gambling regulators, The Wall Street Journal has previously reported.
Companies are rushing to enter the prediction markets, including sportsbooks DraftKings and FanDuel, exchange operators CME and Cboe Global Markets, and President Trump’s social-media company, Trump Media & Technology. Polymarket recently secured an investment from the owner of the New York Stock Exchange, according to The Journal. And The National Hockey League has reached licensing agreements with prediction-market startups Kalshi and Polymarket.