Prediction market platform Kalshi has secured a staggering $1 billion in a new funding round, catapulting its valuation to $11 billion. This represents more than a doubling of its value in less than two months, marking a significant milestone for the company and the prediction market industry as a whole.
The funding round was led by returning investors Sequoia and CapitalG, demonstrating their continued confidence in Kalshi's vision and potential. Other notable investors participating in the round include Andreessen Horowitz, Paradigm, Anthos Capital, and Neo.
This substantial investment comes on the heels of Kalshi's $300 million fundraise, which valued the company at $5 billion, announced less than two months prior. The rapid increase in valuation underscores the growing interest and investment in prediction markets as a novel asset class.
Kalshi, founded in 2018 by Tarek Mansour and Luana Lopes Lara, allows users to trade on the likely outcome of future events. The platform received regulatory approval from the Commodity Futures Trading Commission (CFTC) in November 2020 and launched its trading platform in July 2021. In January 2025, Donald Trump Jr. joined Kalshi as a strategic advisor.
The company's success is attributed to its focus on regulatory compliance and its ability to tap into the growing demand for event-based trading. In June 2025, Kalshi's valuation was at $2 billion. The company has also been proactive in expanding its offerings, launching prediction markets for various sectors, including technology IPOs and control of the U.S. Congress.
Kalshi's rise comes amid increasing competition in the prediction market space. Polymarket, a rival platform, was reportedly in discussions last month to raise additional funding at a valuation between $12 billion and $15 billion. However, Polymarket had previously faced regulatory challenges, agreeing to ban U.S. users in 2022 following CFTC enforcement action. This gave Kalshi an edge in capturing the U.S. market. In October 2025, Kalshi expanded its services to over 140 countries.
Kalshi currently generates more weekly trading volume than Polymarket, even after Polymarket was barred from serving US residents from 2022 until September 2025. While Polymarket still has greater per-market liquidity, Kalshi has captured the US market while Polymarket was locked out of it.
The substantial funding round and soaring valuation highlight the increasing mainstream acceptance of prediction markets as a tool for hedging risk, gaining insights, and expressing opinions on future events. As Kalshi continues to innovate and expand its reach, it is poised to play a leading role in shaping the future of this rapidly evolving industry.
