New York-based financial exchange Kalshi just announced a major win, pulling in over $300 million in its latest funding round. This new money pushes its company value to a whopping $5 billion. That figure more than doubles Kalshi’s previous $2 billion valuation, which they hit after securing $185 million in June. Big-name investors like Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG, and Coinbase Ventures led the funding, aiming to help Kalshi grow worldwide.
Kalshi runs a prediction market where people can trade event contracts. These are simple “yes or no” questions about future events. Both regular people and big financial groups use the platform. They can place bets on things like economic numbers, weather patterns, contests, and even political or legislative outcomes.
Riding a Wave of Growth
The platform has seen huge growth. It expects to handle $50 billion in trades this year alone. That’s a massive jump from just $300 million last year. This rapid expansion has allowed Kalshi to grab more than 60% of the global prediction market. This puts them ahead of their main competitor, Polymarket.
Several things are fueling this success. The rise of sports betting, especially combined bets, plays a big part. Kalshi also benefits from linking up with popular trading platforms like Robinhood and Webull. These connections make event trading easier for more people.
Global Reach and Regulatory Hurdles
A good chunk of the new funds will go toward Kalshi’s first big international push. The company already lets users from over 140 countries access its services, in addition to its operations in the United States.
Still, Kalshi has faced some bumps in the road. Even after clearing federal hurdles with the Commodity Futures Trading Commission (CFTC), several US states have sued the company. They claim Kalshi is getting around laws meant for sports betting. Despite these issues, the company’s success shows how popular these new financial tools are becoming. Major news outlets, including Bloomberg and CoinDesk, have confirmed these details through company spokespeople. This cements Kalshi’s spot as a key player in the prediction market world.
Hot Competition in the Prediction Market
Just a few days earlier, Polymarket, a crypto-based prediction platform, also made headlines. Intercontinental Exchange (ICE), the company behind the New York Stock Exchange (NYSE), announced it would invest up to $2 billion in Polymarket. This deal values Polymarket at $9 billion, setting up an interesting competition between the two growing prediction market leaders.