Prediction market Kalshi announced on Tuesday that it raised a one billion dollar funding round at an eleven billion dollar valuation. This confirms a prior report from TechCrunch last month. The round was led by returning investor Paradigm, with participation from Sequoia Capital, Andreessen Horowitz, Capital G, and other existing backers.
This latest funding comes less than two months after Kalshi announced it had raised three hundred million dollars at a five billion dollar valuation. Although the trading platform surged in popularity last year when people used it to predict the outcome of the 2024 U.S. presidential elections, a large portion of Kalshi’s trades are actually tied to sports.
Kalshi is reportedly planning to announce a partnership with CNN. Future growth is also expected to come from various companies using Kalshi to hedge against business-specific risks, such as government shutdowns or adverse weather changes.
Polymarket, Kalshi’s main rival, was reportedly in talks to raise another round at a twelve to fifteen billion dollar valuation, according to a Bloomberg report from October.