Kalshi Raises $1B at $11B Valuation - Doubling Value Quickly

Kalshi Secures $1 Billion Funding Round

Kalshi, a prediction market platform enabling users to wager on the outcomes of future events, revealed on Tuesday the completion of a $1 billion funding round.

This investment establishes the company’s valuation at $11 billion, validating a report initially published by TechCrunch last month.

Investment Details

The funding round was spearheaded by existing investor Paradigm. Significant participation also came from Sequoia Capital, Andreessen Horowitz, Capital G, and other current investors.

Notably, this latest capital injection arrives less than two months following Kalshi’s announcement of a $300 million raise, which valued the company at $5 billion.

Market Focus and Growth

While the platform experienced a surge in user activity last year due to predictions surrounding the 2024 U.S. presidential election, a substantial volume of Kalshi’s trading activity centers around sporting events, as reported by The New York Times.

Kalshi is anticipated to unveil a strategic partnership with CNN in the near future.

Further expansion is projected through businesses utilizing Kalshi to mitigate specific operational risks, including potential government shutdowns and unfavorable weather patterns.

Competitive Landscape

Polymarket, Kalshi’s primary competitor, was reportedly engaged in discussions to secure another funding round at a valuation ranging from $12 billion to $15 billion, according to a Bloomberg report from October.

This indicates a growing investor interest in the prediction market sector.