Prediction Market Kalshi's Valuation Jumps to $11B After Reported $1B Raise

Source: CryptoNewsNet Original Title: Prediction Market Kalshi’s Valuation Jumps to $11B After Reported $1B Raise Original Link: U.S. prediction market platform Kalshi has reportedly pushed its valuation to roughly $11 billion after raising $1 billion in a yet undisclosed funding round.

The rise in valuation marks one of the fastest step-ups in the prediction market sector this year.

The company closed the round weeks after securing $300 million at a $5 billion valuation in October. Trading activity, market depth, and user adoption continued to climb into this year’s final quarter.

Kalshi’s annualized trading volume reached about $50 billion last month, according to a report from crypto analytics platform CryptoRank. The figure marks a dramatic jump from roughly $300 million just a year ago.

It has also outpaced Polymarket, its main rival. Just last month, it generated approximately $4.4 billion in trading volume, surpassing Polymarket’s $4.1 billion during the same month.

About a third of bets on Kalshi are for sports-related markets, according to a Dune dashboard. Weekly notional volume among prediction markets have also been on a steady rise since September.

Sequoia Capital and CapitalG reportedly led the deal, joined by Andreessen Horowitz, Paradigm, Anthos Capital, Neo, and other returning backers.

Prediction Markets and Regulators

Prediction markets have long faced legal friction in the U.S., given how such platforms sit between regulated derivatives and prohibited gambling—creating a jurisdictional tension that has so far shaped the industry’s growth.

Kalshi won a high-profile lawsuit last year against the Commodity Futures Trading Commission, securing the right to offer election markets to U.S. users. The ruling accelerated domestic growth, but opened new fronts with state regulators who view certain types of contracts as gambling products rather than federally governed derivatives.

In May, the Commodity Futures Trading Commission moved to drop its appeal against Kalshi’s victory in a case allowing the company to offer U.S. contracts on election outcomes. Still, the company has concurrent disputes with several state regulators who argue its contracts still fall under gambling statutes rather than commodities law.

Months later, its rival Polymarket received approval from the same regulator to operate in the U.S., years after it was fined and pushed offshore over allegations that it failed to comply with the regulator’s federal policies.