Kalshi Raises $300 Million, Doubling Valuation as Prediction Markets Surge
Kalshi announced on Friday that it had secured over $300 million in a new funding round led by Sequoia Capital and Andreessen Horowitz, boosting the company’s valuation to $5 billion — more than double what it achieved just four months ago.
The latest fundraising reflects growing investor enthusiasm for prediction market platforms, which allow users worldwide to trade binary contracts on outcomes in politics, sports, economics, and entertainment. The model has gained momentum for its event-driven trading and innovative approach to risk management.
However, prediction markets remain a point of debate among financial experts. Some argue they provide more accurate forecasting than traditional polling, while others dismiss them as “digital casinos” that could introduce new risks into the financial system.
Kalshi’s August funding round had already drawn participation from Paradigm, a crypto-focused venture firm that previously led a $185 million round valuing Kalshi at $2 billion. The latest round also saw investments from CapitalG, Coinbase Ventures, General Catalyst, and Spark Capital.
Rapid Growth and Regulatory Milestones
The new funding comes after Kalshi’s legal victory against the U.S. Commodity Futures Trading Commission (CFTC) earlier this year, which allowed the platform to list contracts tied to the U.S. presidential election.
“Kalshi’s founders, Tarek Mansour and Luana Lopes Lara, chose the more responsible path of becoming the first CFTC-regulated prediction market,” said Alex Immerman, a partner at Andreessen Horowitz’s growth fund. “Their infrastructure, liquidity, and market breadth are designed for long-term scalability.”
Founded in 2018, Kalshi continues to break records, surpassing $1 billion in weekly trading volume, and now operates in over 140 countries.
Earlier this week, Kalshi’s competitor Polymarket also attracted attention after receiving a $2 billion investment from the New York Stock Exchange’s parent company, further highlighting institutional interest in event-based financial platforms.
