Kalshi Hits $11 Billion Valuation After Raising a Record $1 Billion Round

Kalshi, the fast-growing prediction market platform that lets users bet on future events, has secured a massive $1 billion funding round, pushing its valuation to $11 billion, according to a source familiar with the deal.

This new round arrives less than two months after the seven-year-old startup raised $300 million at a $5 billion valuation, highlighting the company?s rapid acceleration.

The latest investment was reportedly led by returning backers Sequoia and CapitalG. Kalshi?s investor roster also includes Andreessen Horowitz, Paradigm, Anthos Capital, and Neo.
Kalshi and Sequoia declined to comment, while CapitalG did not respond.

Rivalry With Polymarket Intensifies

The funding comes amid a heated race with its closest competitor, Polymarket, which was recently reported to be in talks to raise capital at a valuation between $12 billion and $15 billion. That potential deal would follow Polymarket?s own $1 billion round at an $8 billion pre-money valuation, according to Bloomberg.

Both platforms surged in global popularity last year, driven largely by their markets on the U.S. presidential election. Their prominence grew further this month after accurately projecting the results of New York City?s mayoral race.

During the Mamdani?Cuomo contest, Kalshi bought advertising space across New York subway cars, displaying live, real-time odds for each candidate ? a marketing push that significantly boosted its visibility in the city.

Global Reach and Explosive Growth

Kalshi now operates in over 140 countries, offering markets on everything from Time magazine?s 2025 Person of the Year and major film ratings to long-term outcomes like future U.S. presidential elections.

In October, the company hit $50 billion in annualized trading volume, a staggering jump from roughly $300 million last year, the New York Times reported.

Founded by former hedge fund traders Tarek Mansour and Luana Lopes Lara, who met while studying computer science and mathematics at MIT, Kalshi has positioned itself as one of the leading platforms in the prediction-market space.

Legal Battles Continue

Prediction markets have long been controversial due to their overlap with both financial instruments and gambling. Although Kalshi won a major legal victory last year after suing the Commodity Futures Trading Commission (CFTC), allowing Americans to legally use its platform, it remains embroiled in disputes with several U.S. states that argue its services qualify as illegal gambling.

Polymarket, meanwhile, has been barred from serving U.S. users since 2022 following a CFTC settlement. But after acquiring a derivatives exchange and clearinghouse in July, Polymarket regained the right to operate in the U.S. In September, its CEO and founder Shayne Coplan announced on X that the company had ?been given the green light? by the CFTC to go live domestically.