Decentralized prediction market platform Kalshi has secured $1 billion in a recent funding round, raising its valuation to $11 billion, as per a report by TechCrunch. The funding is a major milestone for the U.S.-regulated platform, which had only a few weeks ago announced a $300 million funding round that valued the company at $5 billion. Kalshi chose not to comment on the latest financing.
Sequoia and CapitalG, the two existing investors, led the new round. According to the report, besides Stangeland, other major venture firms like Andreessen Horowitz, Paradigm, Anthos Capital, and Neo also contributed. The fresh money infusion is a clear signal of growing institutional interest in prediction markets. This sector is picking up pace and attracting more users of event-based trading platforms.
The very short period of time between the two valuation jumps is what really gets the most attention. The fact that it went from $5 billion at the last round to $11 billion this time points to a big surge in investor confidence. That, plus the overall trend of the prediction market sector getting stronger and more popular both in the traditional finance and crypto-native communities, is what really explains the jump.
Internal dashboard data shows that Kalshi has been leading in monthly trading volume over its nearest competitor Polymarket since September. In October, Kalshi’s trading volume amounted to $4.4 billion, while Polymarket’s was $3.02 billion – this is a clear indication of strong user adoption and high market engagement in various event categories.
Last month, it was reported that Polymarket might be looking to raise new capital, with its valuation estimated to be between $12 billion and $15 billion, according to Bloomberg. Besides that, the energy and commodity exchange holding company Intercontinental Exchange, which is the parent company of NYSE, has also agreed to invest up to $2 billion in Polymarket. This move by the major financial players is certainly a stamp of great confidence in the sector’s accelerating momentum.
The concept of prediction markets has gone global and thrived all through 2025. It came to light earlier this month when Google Finance made the announcement of the plans to integrate real-time market data from both Kalshi and Polymarket straight to its search results. This is a big step towards getting in with the mainstream.
This month, Bernstein analysts made the point that prediction markets are turning into larger info centers that cover not only sports and politics but also culture, economics, and business. John Wang, the head of crypto at Kalshi, mentioned last month that the company plans to broaden the availability of its service to “every big crypto app and exchange” in the following year.
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