Prediction market platform Kalshi has raised over $300 million in new funding, propelling its valuation to $5 billion — a 2.5× increase from just three months ago, when the company was last valued at $2 billion.
The round was co-led by Sequoia Capital and Andreessen Horowitz (a16z), with participation from Paradigm Ventures, CapitalG, and Coinbase Ventures. The latest investment comes amid a surge of global interest in prediction markets and days after its chief rival Polymarket announced a $2 billion investment from Intercontinental Exchange (ICE) — the owner of the New York Stock Exchange (NYSE) — valuing Polymarket at $8 billion pre-money.
Prediction markets go mainstream
Kalshi allows users to trade contracts based on real-world events, such as elections, inflation rates, and policy decisions — effectively enabling people to “bet” on outcomes in a regulated financial environment.
The company also announced that its platform is now open to users in 140 countries, expanding rapidly as global appetite for event-based trading grows.
According to the New York Times, the company is on pace to hit $50 billion in annualized trading volume, a massive jump from around $300 million in total volume last year.
“Prediction markets are becoming the next major financial instrument — where information, incentives, and liquidity converge,” said a spokesperson from Sequoia. “Kalshi is leading the way in turning speculation into structured market insight.””
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Rivalry with Polymarket intensifies
Kalshi’s announcement comes just days after Polymarket’s landmark deal with ICE, which valued the rival at $8 billion — up from $1 billion in August.
The two companies have become central players in the rapidly evolving prediction market space, particularly around high-stakes events like the U.S. presidential election.
While Polymarket was barred from serving U.S. residents after a 2022 CFTC settlement, the company recently acquired a derivatives exchange and clearing house, paving the way for its reentry into the American market. Founder Shayne Coplan confirmed on X last month that the CFTC had given Polymarket approval to operate in the U.S.
Kalshi, meanwhile, is fully CFTC-regulated and won the right for Americans to use its platform after successfully suing the agency last year.
The future of financialized forecasting
Kalshi’s rapid valuation growth and global expansion underscore investor confidence that prediction markets are poised to become a core part of the modern financial system — blending elements of trading, data analytics, and social sentiment.
As the sector matures, both Kalshi and Polymarket are racing to define the category’s future — and dominate the market where information itself becomes the ultimate asset class.
