Kalshi has successfully closed a significant Series E funding round, raising $1 billion and achieving an $11 billion valuation. This substantial investment follows the platform's record-breaking monthly trading volume in November. The round was spearheaded by Paradigm, a venture firm specializing in crypto, with notable participation from established investors including Sequoia, Andreessen Horowitz, and ARK Invest, led by Cathie Wood.
This latest funding injection more than doubles Kalshi's previous valuation of $5 billion, which was established during a $300 million funding round in October. According to an announcement made on Tuesday, Kalshi intends to utilize these funds to enhance its platform by integrating with more brokerages, forging strategic partnerships with news organizations, and broadening its overall service offerings.
Record Trading Volume and Market Leadership
Kalshi CEO Tarek Mansour articulated the platform's mission to replace subjective debate with data-driven markets and accuracy. In November, trading volume on Kalshi surged to $4.54 billion, surpassing the previous record of $4.49 billion set in October, as reported by Token Terminal data. This consistent growth highlights the increasing adoption of prediction markets as a reliable source for assessing probabilities.
The platform has now established a clear lead over its closest competitor, Polymarket, which recorded $3.76 billion in volume for November, up from $3 billion in October. Kalshi has reported a remarkable 1,000% growth in trading volumes since 2024, with weekly volumes now exceeding $1 billion. This surge in activity underscores the growing interest and utility of prediction markets.
Integration and Broader Adoption
The increasing trading volumes are partly attributed to strategic integrations with other platforms, positioning Kalshi and Polymarket as tools for crowd-sourced probability assessment. Google recently announced its intention to incorporate odds from both Kalshi and Polymarket into its search results as part of an extensive revamp of Google Finance, with a focus on artificial intelligence integration. This move signifies a major step towards mainstream recognition and usage of prediction market data.
Furthermore, major cryptocurrency exchange Coinbase was reported last month to be developing a prediction markets platform, which is expected to be powered by Kalshi. Polymarket is also reportedly in discussions with investors for a new funding round that could value the company between $12 billion and $15 billion. This follows their completion of a $200 million funding round in June, led by Peter Thiel's Founders Fund, which valued the company at $1 billion.
Kalshi's core functionality allows users to trade on contracts related to a wide array of events, ranging from sports outcomes to significant geopolitical developments. The platform's accelerated growth is indicative of a broader trend towards the adoption of prediction markets as valuable instruments for information discovery and probability assessment across various financial and news-related platforms.