Kalshi’s Valuation Rockets to $11B as U.S. Prediction Markets Enter Hyper-Growth Phase

U.S. prediction market giant Kalshi has reportedly surged to an $11 billion valuation after securing a massive $1 billion funding round, according to early reporting sourced by TechCrunch. The leap marks one of the sharpest valuation jumps seen in the prediction market space this year, underscoring the platform’s accelerating momentum.

The deal lands just weeks after Kalshi closed a $300 million round at a $5 billion valuation in October—a rapid-fire sequence that tracks closely with the platform’s intensifying user activity and deepening market liquidity heading into the final quarter of the year.

Kalshi’s growth metrics have exploded. The platform’s annualized trading volume reached roughly $50 billion last month, a staggering rise from about $300 million a year earlier, as noted by the New York Times. The company also overtook its closest competitor, Polymarket, generating approximately $4.4 billion in monthly trading volume—slightly surpassing Polymarket’s $4.1 billion over the same period. Sports-related contracts now make up nearly one-third of all activity on Kalshi, according to Dune Analytics dashboards, with total notional volume across prediction markets steadily climbing since September.

Sequoia Capital and CapitalG reportedly co-led the billion-dollar round, with participation from Andreessen Horowitz, Paradigm, Anthos Capital, Neo, and other returning investors. The influx of capital reflects renewed confidence in the long-controversial sector, which has historically operated on the fault line between regulated derivatives and prohibitions on gambling—an uncomfortable regulatory gray zone that has shaped its development.

Kalshi’s legal battles have been central to that evolution. Last year, the company secured a high-profile court victory against the Commodity Futures Trading Commission, winning the right to offer election-related contracts to U.S. users. The ruling ignited domestic growth but simultaneously sparked pushback from several state regulators who continue to argue that certain event-based markets count as gambling activity.

In May, the CFTC dropped its appeal of the case, clearing a major federal obstacle. Yet disputes with state-level authorities remain ongoing. Meanwhile, rival Polymarket recently regained the regulator’s approval to operate in the U.S., years after it was fined and forced offshore over compliance violations—a sign that federal attitudes toward prediction markets may be slowly shifting.

With fresh capital, surging volumes, and intensifying regulatory clarity, Kalshi now stands at the center of a fast-maturing market that appears poised for its next breakout phase.