Prediction market platform Kalshi has raised $1 billion in fresh investment, lifting its valuation to $11 billion, according to a person familiar with the transaction. The deal comes less than two months after the company closed a $300 million Series D round that valued the business at $5 billion.
The latest funding is being led by returning backers Sequoia and CapitalG, the source said. Kalshi’s wider investor list includes Andreessen Horowitz, Paradigm, Anthos Capital and Neo.
Founded by Tarek Mansour and Luana Lopes Lara, the company was established following the pair’s studies in computer science and mathematics at MIT. Both founders previously worked as traders at hedge funds, which informed their ambition to create a regulated platform where people could legally trade on future events.
Kalshi positions itself as a prediction exchange that combines the formal structure of financial markets with an accessible user experience, providing retail participants with the ability to take positions on outcomes ranging from politics to economics. The company strengthened its regulatory footing last year after winning a court battle with the Commodity Futures Trading Commission that confirmed Americans are permitted to use the platform.
In contrast to competitors such as Polymarket, which operates using decentralised blockchain technology and has faced repeated regulatory scrutiny in the United States, including being prevented from serving domestic users since 2022, Kalshi runs a centralised, CFTC-compliant exchange that supports trading in fiat currency.
Marketing initiatives such as publishing real-time election odds across New York’s subway system have helped widen public awareness. Annualised trading volume on the platform has climbed to $50 billion, signalling strong uptake from users and establishing Kalshi as a key player in the sector.
The company plans to broaden its international footprint by opening access to more than 140 countries and developing features aimed at institutional clients. The latest funding injection is expected to support technological upgrades, product expansion and investment in trading infrastructure.
The capital raise also positions Kalshi to compete more aggressively with Polymarket, which is preparing a return to the U.S. through potential acquisitions as it seeks to scale its own operations.
