Kalshi hits $5B valuation days after rival Polymarket gets $2B NYSE backing at $8B

Kalshi, a platform enabling users to wager on future events, has successfully raised over $300 million, catapulting its valuation to an impressive $5 billion. This marks a remarkable increase of 2.5 times from its previous valuation of $2 billion just three months ago. The funding round was led by existing investor Sequoia Capital, with notable participation from new investor Andreessen Horowitz, along with Paradigm Ventures, CapitalG, and Coinbase Ventures. In a significant expansion, Kalshi announced that its betting services are now accessible to consumers in 140 countries. The prediction market is experiencing a substantial boost in activity, projecting an annualized trading volume of $50 billion—an extraordinary leap from the roughly $300 million recorded last year, according to reports from the New York Times. This announcement follows closely on the heels of news from Polymarket, a key competitor, which disclosed it had secured up to $2 billion from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. This investment values Polymarket at $8 billion before any capital infusion, a remarkable increase from its valuation of $1 billion just two months prior. Both Kalshi and Polymarket gained significant attention last year, particularly for their prediction markets surrounding the presidential election results. However, Polymarket has faced challenges, including a ban on serving U.S. residents since 2022 due to a settlement with the Commodity Futures Trading Commission (CFTC). Recently, Polymarket acquired a derivatives exchange and a clearinghouse, paving the way for its return to the U.S. market. The company’s CEO, Shayne Coplan, announced on X that they have received CFTC approval to resume operations in the U.S. Meanwhile, Kalshi has successfully secured the right for American users to access its platform after winning a legal battle against the CFTC last year.