Prediction Platform Kalshi Raises Record Investment Led by Sequoia and CapitalG

Staff Report, PNN

Kalshi, a prediction market platform that allows users to bet on various future events, recently raised $1 billion in funding. With this round, the company’s total valuation reached $11 billion, a sharp increase from $5 billion just two months ago when it raised $300 million.

The new funding round is led by Sequoia and CapitalG, with investors including Andreessen Horowitz, Paradigm, Anthos Capital, and Neo. Neither the company nor Sequoia commented, and CapitalG did not respond to requests.

Kalshi’s main competitor, Polymarket, was also attempting to raise funds, with valuations reportedly between $12–15 billion. Both companies gained popularity last year through betting on the U.S. presidential election results. Kalshi recently predicted the New York City mayoral election accurately, boosting its market reputation.

Kalshi allows users in over 140 countries to place bets on various future events, including Time Magazine’s 2025 Person of the Year, Rotten Tomatoes scores for the movie Wicked, and distant future elections or events.

As of mid-October, Kalshi’s annual trading volume reached $50 billion—1,000 times higher than last year’s $300 million.

Kalshi was founded by former hedge fund traders Tarek Mansour and Luana Lopez Lara, who met while studying at MIT.

Prediction markets have long faced legal scrutiny as they operate in a gray area between financial instruments and conventional gambling. Last year, Kalshi successfully secured U.S. citizen access rights by complying with the Commodity Futures Trading Commission (CFTC). However, the company is still involved in legal disputes with various state regulators.

Meanwhile, Polymarket has not been permitted to serve U.S. citizens since 2022. In July, it acquired a derivatives exchange and clearinghouse to regain access to the U.S. market.