Kalshi, the fast-growing prediction market platform that lets users bet on the outcomes of real-world events, has secured a staggering $1 billion in fresh capital at a valuation of $11 billion, TechCrunch reported, citing a person familiar with the deal.
Key Takeaways:
Kalshi raised $1B at an $11B valuation just weeks after its previous $300M round.
The round was led by Sequoia and CapitalG, with major firms including Andreessen Horowitz and Paradigm joining the deal.
Kalshi’s growth intensifies its rivalry with Polymarket.
The raise arrives less than two months after Kalshi closed a $300 million round at a $5 billion valuation, underscoring the feverish investor appetite for the company as prediction markets explode into the mainstream.
Sequoia and CapitalG Lead Kalshi’s New Billion-Dollar Funding Round
The latest financing was led by returning backers Sequoia and CapitalG, Alphabet’s growth fund.
They were joined by a roster of prominent investors including Andreessen Horowitz, Paradigm, Anthos Capital, and Neo. Kalshi and Sequoia declined to comment on the deal, while CapitalG did not respond to a request for comment.
Kalshi’s rapid rise comes amid intensifying competition with its closest rival, Polymarket, which was reported last month to be in talks for a new raise that could value it between $12 billion and $15 billion, just weeks after closing a $1 billion round at an $8 billion pre-money valuation.
The two firms have been at the center of a breakthrough year for prediction markets, fueled by heightened political attention and unprecedented trading activity.
Both platforms surged in visibility last year after allowing users to wager on the US presidential election.
Their credibility strengthened further when markets on both Kalshi and Polymarket correctly forecasted the outcome of New York City’s mayoral race earlier this month.
Kalshi even plastered live election odds across New York subway cars, bringing prediction markets directly into the daily commute of millions and raising brand awareness citywide.
Kalshi now serves users in more than 140 countries, offering markets on everything from Time’s 2025 Person of the Year and the expected Rotten Tomatoes score for “Wicked,” to longer-horizon bets such as the next US president.
In October, the company crossed $50 billion in annualized trading volume, a meteoric leap from roughly $300 million last year, according to The New York Times.
The company was founded by former hedge-fund traders Tarek Mansour and Luana Lopes Lara, who met while studying computer science and mathematics at MIT.
Their platform has faced ongoing regulatory challenges, as prediction markets sit at the intersection of finance and gambling law.
Kalshi Wins Against CFTC
Kalshi won a major victory last year after successfully suing the Commodity Futures Trading Commission (CFTC), securing the right to operate legally in the US.
However, it remains locked in disputes with several state regulators who still classify the service as gambling.
Polymarket, meanwhile, has been barred from serving US users since 2022 following a CFTC settlement. In July, it acquired a derivatives exchange and clearinghouse, paving the way for a return to the US market.
CEO Shayne Coplan said in September that the company received the “green light” from the CFTC to resume US operations.
Investor interest in prediction markets has surged throughout 2025.
Google Finance announced earlier this month that it will integrate Kalshi and Polymarket data directly into search results, while analysts at Bernstein describe the industry as evolving into sprawling information hubs covering politics, markets, sports, culture, and beyond.
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