Kalshi, a prediction market that allows people to bet on future events, announced that it raised over 300 million dollars at a 5 billion dollar valuation. The company’s value has increased two and a half times since its last fundraise just three months ago, when it was valued at 2 billion dollars.
The fresh capital came from Kalshi’s existing investor, Sequoia Capital, with new investor Andreessen Horowitz co-leading the round. Paradigm Ventures, Capital G, and Coinbase Ventures also participated. Kalshi also revealed that consumers in 140 countries can now make bets on its platform.
The prediction market is seeing a dramatic surge in activity. Kalshi is set to reach 50 billion dollars in annualized trading volume, up significantly from the approximately 300 million dollar volume posted last year.
Kalshi’s fundraise announcement follows one made just days earlier by its archrival Polymarket. Polymarket revealed that it had secured an investment of up to 2 billion dollars from Intercontinental Exchange, the owner of the New York Stock Exchange, at a pre-money valuation of 8 billion dollars. The deal valued Polymarket at 8 billion dollars pre-money, a monumental increase from its 1 billion dollar valuation only two months earlier in August.
Both Kalshi and Polymarket rose to prominence last year, drawing significant attention for their prediction markets on the presidential election outcome. Polymarket has been barred from serving US residents since 2022, following a settlement with the Commodity Futures Trading Commission. In July, the company acquired a derivatives exchange and a clearing house. The move helped Polymarket receive the right to re-enter the US market. Last month, the company’s CEO and founder said that Polymarket has been given the green light to go live in the USA by the CFTC.
Kalshi secured the right for Americans to use its platform after successfully suing the CFTC last year.