Prime Highlight
- Kalshi secured $1 billion in new funding, boosting its valuation to $11 billion and reflecting growing investor confidence in prediction markets.
- The company plans to strengthen its technology, expand into new market categories, and position itself as a leading global platform for event-based trading.
Key Facts
- Paradigm led the funding round, with participation from existing investors including Sequoia Capital, Andreessen Horowitz, and Capital G.
- Kalshi’s trading activity, initially driven by political predictions during the 2024 U.S. election, now largely comes from sports markets, with future growth expected in media and business sectors.
Background
Kalshi, a prediction market platform, announced that it has raised $1 billion in fresh funding at a valuation of $11 billion. The new round marks a major jump for the company, which was valued at $5 billion less than two months ago after raising $300 million.
Paradigm, a returning investor, led the latest funding round, with strong support from Sequoia Capital, Andreessen Horowitz, Capital G and other existing backers. The sharp rise in valuation shows the growing confidence investors have in prediction markets as a mainstream financial product.
Kalshi allows people to trade on the outcome of future events. While the platform became widely known during the 2024 U.S. presidential election cycle, when millions of users placed political predictions, much of its current trading activity now comes from sports markets, according to The New York Times.
The company is also preparing to expand its presence in the media and business sectors. It is reportedly planning to announce a partnership with CNN, which could help bring prediction markets to a larger audience. In addition, Kalshi expects future growth from companies that may use the platform to hedge business risks.
Kalshi’s main competitor, Polymarket, is also drawing interest from investors. The platform is negotiating a new funding round with a valuation of $12 billion to $15 billion, showing that competition in the prediction market industry is growing.
With its latest funding, Kalshi aims to strengthen its technology, expand its market categories, and position itself as a leading platform for event-based trading worldwide.