Prediction Market Kalshi Raises $1B at $11B Valuation in Mega Funding Round

Kalshi, a rapidly expanding prediction market platform that allows users to place bets on real-world events, has successfully raised a remarkable $1 billion in its latest funding round, achieving an impressive valuation of $11 billion, as reported by TechCrunch through insider sources.

This major funding round follows just weeks after Kalshi closed a $300 million round that valued the company at $5 billion, highlighting a robust demand from investors eager to capitalize on the burgeoning popularity of prediction markets.

Sequoia and CapitalG Lead Kalshi’s New Billion-Dollar Funding Round

The recent funding was led by notable investors Sequoia and CapitalG, Alphabet’s growth fund. They were joined by an impressive array of investors, including Andreessen Horowitz, Paradigm, Anthos Capital, and Neo. Both Kalshi and Sequoia opted not to comment on the deal, while CapitalG has yet to respond to inquiries.

Kalshi’s swift ascent comes amidst growing competition with its main rival, Polymarket, which was recently reported to be raising funds that could value the company between $12 billion and $15 billion after closing a $1 billion round at an $8 billion pre-money valuation.

Both platforms have gained traction in a pivotal year for prediction markets, driven by increasing political scrutiny and unprecedented trading volumes. Their joint visibility surged as they enabled users to wager on key political events, like the U.S. presidential election, and solidified their credibility by accurately forecasting outcomes in significant elections, such as the recent New York City mayoral race.

Kalshi has taken bold steps to increase brand visibility, even advertising live election odds on New York subway cars, further embedding prediction markets into the daily lives of millions.

Currently, Kalshi caters to users in over 140 countries, providing markets on a diverse array of subjects—from Time’s 2025 Person of the Year to the expected score on Rotten Tomatoes for “Wicked,” as well as forecasts regarding future U.S. presidents.

In a striking leap, the company surpassed $50 billion in annualized trading volume this October, a monumental increase from approximately $300 million just a year prior, as highlighted by The New York Times.

Founded by former hedge-fund traders Tarek Mansour and Luana Lopes Lara, who met during their studies in computer science and mathematics at MIT, Kalshi aims to continue evolving its platform, notwithstanding the ongoing regulatory hurdles that come with operating within a landscape uniquely lying at the crossroads of finance and gambling.

Kalshi Wins Against CFTC

Kalshi achieved a significant victory last year when it successfully sued the Commodity Futures Trading Commission (CFTC) to secure its operational legitimacy in the U.S. However, challenges linger with several state regulators who still classify its offerings as gambling.

In contrast, Polymarket has been unable to serve U.S. users since 2022 after a settlement with the CFTC but has made strides to re-enter the market; in July, it secured a derivatives exchange and clearinghouse, which could facilitate a comeback. CEO Shayne Coplan announced in September that the company received the “green light” from the CFTC to resume U.S. operations.

Investor enthusiasm for prediction markets has surged throughout 2025, with Google Finance announcing plans to incorporate Kalshi and Polymarket data directly into search results. Analysts at Bernstein highlight the industry’s evolution into expansive repositories of information spanning politics, finance, sports, culture, and more.

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