Prediction market platform Kalshi has doubled its valuation to more than $11 billion after securing a new $1 billion funding round, signaling a significant mainstream ascent for the burgeoning sector.
The Series E round was led by crypto-focused venture capital firm Paradigm. Additional investors included Sequoia Capital, Andreessen Horowitz, and Cathie Wood’s Ark Invest.
This latest injection of capital more than doubles Kalshi’s previous valuation of $5 billion, which it achieved in October after a $300 million raise. The company’s rapid growth comes amid a surge in users and integrated products across prediction markets.
“Kalshi is replacing debate, subjectivity, and opinion with markets, precision, and truth,” said Tarek Mansour, the company’s CEO. “We have created a new way to consume and interact with information.”
The funding follows a period of record-breaking activity for Kalshi, which reported its best-ever month in November. Trading volumes reached $4.54 billion that month, surpassing the previous high of $4.49 billion in October.
The company stated its volumes currently exceed $1 billion per week. This accelerated use reflects growing interest in platforms for expressing expectations on sports, political, and geopolitical events.
Kalshi has also gained ground on its main competitor, Polymarket. Polymarket recorded $3.76 billion in volume in November, following $3 billion in October.
Both firms collectively dominate the prediction market landscape. November marked a historical peak for both platforms, which are now increasingly focused on institutional growth.
Kalshi plans to utilize the new capital to integrate more brokers, strengthen partnerships with media organizations, and expand its offerings of available markets.
The boom in prediction markets coincides with major technology companies beginning to incorporate probability data derived from these platforms.
In November, Google announced plans to integrate probabilities from Kalshi and Polymarket into Google Finance search results. This update is linked to its artificial intelligence initiatives.
Evidence also suggests cryptocurrency exchange Coinbase is developing a prediction market website. This platform is reportedly powered by Kalshi, further expanding its reach into the wider crypto ecosystem.