Kalshi, a prediction market platform where people can bet on future events, has announced it raised over 300 million dollars. This funding round values the company at five billion dollars. This new valuation is two and a half times higher than its value from just three months ago, when it was worth two billion dollars.
The new investment was led by Kalshi’s existing investor, Sequoia Capital. The venture firm Andreessen Horowitz, a new investor, co-led the round. Other participants included Paradigm Ventures, CapitalG, and Coinbase Ventures. Kalshi also revealed that consumers in 140 countries can now place bets on its platform.
The prediction market is experiencing a dramatic surge in activity. Reports indicate Kalshi is set to reach fifty billion dollars in annualized trading volume. This is a massive increase from the approximately three hundred million dollars in volume it posted last year.
This fundraise announcement from Kalshi follows one made by its rival, Polymarket, just days earlier. Polymarket revealed it secured an investment of up to two billion dollars from Intercontinental Exchange, the owner of the New York Stock Exchange. That deal valued Polymarket at eight billion dollars pre-money. This is a monumental increase from its one billion dollar valuation only two months prior.
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 United States residents since 2022, following a settlement with the Commodity Futures Trading Commission. In July, the company acquired a derivatives exchange and a clearing house. This move helped Polymarket receive the right to reenter the United States market. Last month, the company’s chief executive officer and founder stated that Polymarket has been given the green light to go live in the United States by the Commodity Futures Trading Commission.
Kalshi secured the right for Americans to use its platform after successfully suing the Commodity Futures Trading Commission last year.