Key Moments:
- Kalshi secured a $1 billion funding round, pushing its valuation to $11 billion
- The platform’s annualized trading volume exceeded $50 billion by mid-October
- Regulatory challenges continue as U.S. state authorities dispute the legal status of prediction markets
Record-Breaking Investment Elevates Kalshi’s Status
Kalshi has achieved a new milestone after closing a massive $1 billion funding round, resulting in an $11 billion valuation. This latest investment arrives only two months following a $300 million raise, marking one of the most significant surges in valuation for a fintech firm in recent memory.
Sources familiar with the transaction have described it as a strong indication of investor confidence from Sequoia Capital and CapitalG, both returning early backers who increased their stakes despite ongoing legal pressures and heightened competition. Andreessen Horowitz, Paradigm, Anthos Capital, and Neo are still on Kalshi’s cap table from prior rounds, though they did not participate in this latest financing.
With this new round, Kalshi stands beside chief competitor Polymarket, which is reportedly seeking funding at valuations up to $15 billion. The rapid influx of capital into both companies reflects deep support from prominent Silicon Valley investors and highlights the emerging mainstream appeal of prediction markets.
Growth and Public Interest on the Rise
Kalshi’s recent momentum has been dramatic, with annualized trading volume exceeding $50 billion by mid-October – an increase of more than one thousand times compared to the same period last year. By early November, the platform had already surpassed Polymarket’s monthly volume, maintaining a trend of consistent record setting for both firms each quarter.
This expansion is closely linked to rising demand for market-based forecasting, particularly around political events. The U.S. presidential election last year brought prediction markets into the spotlight, and Kalshi, alongside Polymarket, gained recognition for providing accurate predictions during closely contested races such as the New York City mayoral contest.
Kalshi responded to this surge in interest with high-profile marketing campaigns. During the Mamdani–Cuomo race, the company dominated New York City’s subway advertising by displaying live trading odds across multiple screens, merging prediction markets into the fabric of urban life.
Today, users from over 140 countries use Kalshi to predict outcomes ranging from entertainment to politics, including bets on the next U.S. president. Company leadership has indicated plans to further engage institutional investors, unify prediction markets globally, and integrate prediction data into blockchain and Web3 systems.
Tech Crunch: Kalshi’s valuation jumps to $11 billion
the prediction market battle is gearing up, Polymarket had rumours about a $12 billion round, now Kalshi closing a strong round as well.
it seems like at least investors view Kalshi and Polymarket as neck and neck in the… pic.twitter.com/W55PRgl57B
— Tim Haldorsson (@TimHaldorsson) November 21, 2025
Regulatory Challenges Remain
Kalshi’s rapid ascent has not come without regulatory hurdles. While the company won the right to operate for U.S. users following a successful challenge to the U.S. Commodity Futures Trading Commission (CFTC) last year, ongoing disputes persist with several state regulators who allege that prediction markets constitute illegal gambling.
The fragmented nature of state-level gambling laws has forced Kalshi and other prediction startups to confront multiple legal battles simply to maintain operations. The risks in the sector are evident, illustrated by Polymarket’s experience: after being barred from serving U.S. residents in 2022 due to a CFTC settlement, Polymarket secured regulatory approval to reenter the country following the acquisition of a derivatives exchange and a clearinghouse. This access, however, is still limited to a beta phase.
Prediction market platforms maintain that they provide a new asset class that delivers insight into public sentiment and the probable outcomes of real-world events. However, regulatory authorities remain divided, and scrutiny is expected to intensify as the sector draws more investor interest and becomes closely tied to major global events.
Pursuing a Global Prediction Marketplace
Armed with $1 billion in new funding, Kalshi is positioned to accelerate its global growth strategy. The platform aims to expand event-based futures, strengthen its infrastructure, and embed its technology into blockchain networks – a move that could make prediction markets standard features in trading platforms and information services.
Co-founders Tarek Mansour and Luana Lopes Lara, both former hedge-fund traders with roots at MIT, have built Kalshi into a multibillion-dollar powerhouse over a seven-year journey. The convergence of factors such as election cycles, artificial intelligence, and decentralized finance have helped place the industry in the global spotlight.
Despite the impressive valuations and ongoing growth, major questions remain about the sector’s future. With increasing attention from investors, regulators, and the public, prediction markets face both opportunity and scrutiny. The next chapter will determine whether these platforms cement their place in financial markets or encounter additional legal setbacks.
Capital Raises and Platform Traction
| Company | Recent Funding | Current Valuation | Trading Volume Milestone |
|---|---|---|---|
| Kalshi | $1 billion | $11 billion | $50 billion annualized by mid-October |
| Polymarket | Seeking new round | Up to $15 billion (target) | Lagged Kalshi in monthly activity by early November |
For now, Kalshi’s leap to an $11 billion valuation exemplifies the newfound prominence and momentum within the prediction market industry, marking a pivotal moment for both the company and its competitors striving to become an integral part of the global financial ecosystem.
- Author
Daniel Williams
