Kalshi Hits $11B Valuation After $1B Funding Round

Kalshi’s valuation has skyrocketed to approximately $11 billion following reports of a $1 billion funding round, according to TechCrunch sources familiar with the deal. This represents one of the most rapid valuation increases in the prediction market sector this year, coming just weeks after the company secured $300 million at a $5 billion valuation in October. The dramatic step-up underscores investor confidence in prediction markets despite ongoing regulatory challenges.

The funding round was reportedly led by Sequoia Capital and CapitalG, with participation from returning backers including Andreessen Horowitz, Paradigm, Anthos Capital, and Neo. Farokh Sarmad, co-founder and president of rival prediction market platform Myriad, told Decrypt that Kalshi’s raise ‘just shows the ceiling is only getting higher for prediction markets, and we haven’t seen anything yet.’ The substantial investment from prominent venture firms signals strong belief in the sector’s growth potential.

Kalshi’s trading metrics show extraordinary expansion, with annualized volume reaching approximately $50 billion last month according to data from crypto analytics platform CryptoRank. This represents a staggering increase from roughly $300 million just one year ago, as previously reported by the New York Times. The platform’s monthly performance has been equally impressive, with October generating approximately $4.4 billion in trading volume.

The platform’s growth has enabled it to outpace main competitor Polymarket, which recorded $4.1 billion in trading volume during the same October period. According to a Dune dashboard, about one-third of bets on Kalshi are for sports-related markets, indicating diverse user engagement across different prediction categories. Weekly notional volume across prediction markets has shown steady growth since September, reflecting broader sector momentum.

Kalshi’s domestic expansion has been defined by complex regulatory battles that highlight the jurisdictional tension prediction markets face in the United States. The platform sits between regulated derivatives and prohibited gambling, creating ongoing legal friction. Last year, Kalshi won a high-profile lawsuit against the Commodity Futures Trading Commission (CFTC), securing the right to offer election markets to U.S. users.

The legal victory accelerated domestic growth but opened new challenges with state regulators who view certain types of contracts as gambling products rather than federally governed derivatives. In May, the CFTC moved to drop its appeal against Kalshi’s victory in the election contracts case. However, the company continues to face concurrent disputes with several state regulators who argue its contracts fall under gambling statutes rather than commodities law.

Meanwhile, rival Polymarket recently received approval from the same CFTC regulator to operate in the U.S., years after being fined and pushed offshore over allegations of non-compliance with federal policies. This regulatory landscape continues to evolve as prediction markets gain mainstream traction and investor interest, with Kalshi’s massive funding round demonstrating confidence in the sector’s ability to navigate these complex legal challenges.