Kalshi Hits $5B Valuation Days After Rival Polymarket Secures $2B NYSE Backing at $8B

Kalshi, the prediction market platform that allows users to bet on future events, has raised over $300 million at a $5 billion valuation. This marks a 2.5x increase in the company’s valuation since its previous funding round just three months ago, which valued it at $2 billion.

The new capital came from Sequoia Capital, an existing investor, alongside Andreessen Horowitz, which co-led the round. Paradigm Ventures, CapitalG, and Coinbase Ventures also participated.

With this funding, Kalshi expanded its reach to 140 countries, enabling consumers worldwide to bet on a range of future events. The platform is seeing a surge in activity, with Kalshi projecting annualised trading volume of $50 billion, a sharp increase from the $300 million seen last year, according to the New York Times.

Kalshi’s announcement comes just days after its rival, Polymarket, disclosed that it secured up to $2 billion in investment from Intercontinental Exchange (ICE), the owner of the New York Stock Exchange. This funding round valued Polymarket at $8 billion, a substantial increase from its previous valuation of $1 billion in August.

Both Kalshi and Polymarket gained significant attention last year, particularly for their prediction markets surrounding the U.S. presidential election outcome. However, Polymarket faced regulatory hurdles, being barred from serving U.S. residents in 2022 following a settlement with the Commodity Futures Trading Commission (CFTC). Recently, the company acquired a derivatives exchange and a clearing house, paving the way for its return to the U.S. market. Polymarket’s CEO, Shayne Coplan, confirmed the company received the green light from the CFTC to re-enter the U.S. market.

Meanwhile, Kalshi secured the right to operate in the U.S. by successfully suing the CFTC last year.