TLDR:
- Kalshi hits $11B valuation after raising $1B in funding.
- Kalshi surpasses Polymarket in trading volume, fueling competition.
- Kalshi continues to expand, despite regulatory challenges.
- Kalshi’s $50B trading volume marks major growth.
- Kalshi vs Polymarket: A heated rivalry in prediction markets.
Kalshi, the popular prediction market platform, has raised $1 billion in its latest funding round, bringing its valuation to $11 billion. This funding comes just two months after the company raised $300 million at a $5 billion valuation. Sequoia and CapitalG led the round, with participation from Andreessen Horowitz, Paradigm, Anthos Capital, and Neo.
The rapid growth of Kalshi has been propelled by the increasing popularity of prediction markets, especially in the wake of high-profile political events. Kalshi’s platform allows users to bet on various outcomes, including political elections, film ratings, and global events. The latest funding boost reflects the market’s growing interest in these types of platforms, which have garnered significant attention due to their ability to accurately forecast real-world events.
Rivalry with Polymarket Heats Up
Kalshi’s competition with Polymarket has intensified, as both companies continue to attract large investments. Polymarket is reportedly in talks to raise funds at a valuation between $12 billion and $15 billion, following a recent $1 billion round. Kalshi and Polymarket have become major players in the prediction market industry, with both platforms experiencing rapid expansion.
The rivalry between Kalshi and Polymarket has become more evident in the last year. Both platforms gained major traction during the U.S. presidential election, where their predictions proved to be accurate. Kalshi has since continued to grow, surpassing Polymarket in monthly trading volume as of October, with $4.4 billion compared to Polymarket’s $3.02 billion.
Kalshi’s Market Expansion and Legal Challenges
Kalshi’s growth has not been without challenges. Despite successfully suing the Commodity Futures Trading Commission (CFTC) last year to gain regulatory approval in the U.S., the platform still faces ongoing legal disputes with several state regulators. These regulators argue that Kalshi’s activities should be classified as illegal gambling.
Kalshi continues to expand its services globally, with users in over 140 countries. The company offers markets on various topics, including the Person of the Year for 2025 and the Rotten Tomatoes score for “Wicked.” In October, Kalshi reported $50 billion in annualized trading volume, a significant increase from the $300 million volume recorded last year.
Kalshi’s future remains promising, with plans to expand further. The company aims to make its platform available on major crypto applications and exchanges by the end of next year. Despite regulatory hurdles, Kalshi’s rapid rise signals a growing interest in prediction markets as an alternative method for forecasting events across multiple sectors.
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