Kalshi Secures $1 Billion Funding as Prediction Markets Surge

Kalshi has raised $1 billion in fresh capital at an $11 billion valuation. This is the prediction market platform’s largest round to date and reflects rapid growth in user activity. The company confirmed Tuesday that the Series E raise was led by Paradigm, with participation from Sequoia, Andreessen Horowitz, and ARK Invest.

Kalshi CEO Tarek Mansour said the platform aims to shift public discussion toward data-driven outcomes. He noted that prediction markets present an alternative way for people to track major events. 

The new valuation more than doubles the $5 billion mark Kalshi reached in October following a $300 million round, aligning with a period in which prediction markets have seen a sharp rise in traffic and mainstream visibility.

According to the company, the fresh funds will go toward bringing more brokerages onboard, collaborating with news organizations, and widening the range of tradable subjects on the platform.

Record Volumes Mark a Breakout Month

Kalshi posted its strongest month ever in November and recorded $4.54 billion in trading activity, data from Token Terminal says. The company said weekly activity has now climbed above $1 billion, representing a 1,000% increase since early 2024.

With this, Kalshi is ahead of Polymarket, its closest competitor. Notably, the latter posted $3.76 billion in November after reaching $3 billion the previous month. Both platforms have gained new visibility after integrating with outside products and presenting their markets as a way to crowd-source expectations around major events.

Competition Rises as Polymarket Pursues Its Own Funding

Google recently announced that it would incorporate odds from both Kalshi and Polymarket into its search results as part of a broader update to Google Finance. This gives prediction markets a more prominent place in everyday information searches. 

Coinbase was also preparing a website tied to a prediction market tool. Early indications suggest that Kalshi would supply the underlying data.

Polymarket is reportedly planning to raise new capital at a valuation between $12 billion and $15 billion. The platform raised $200 million in June in a round led by Founders Fund, which valued it at $1 billion at the time. Its own recent growth places the two firms in a tight race as interest in prediction markets accelerates.