Kalshi Secures $1 Billion In Fresh Funding As Valuation Jumps To $11 Billion
Key Takeaways
- Kalshi, a federally regulated prediction market, has raised a staggering $1 billion, lifting its valuation to $11 billion in a mega funding round.
- Sequoia and CapitalG led the mega funding round, with capital firms like Andreessen Horowitz and Paradigm collaborating on the deal.
- The recent round comes just two months after Kalshi officially announced its previous $300 million fundraise at a $5 billion valuation.
- Kalshi’s recent growth and valuation to $11 billion have intensified its arch-rivalry with PolyMarket, the leading prediction market
Kalshi, a federally regulated prediction market that allows users to trade “event contracts” and bet on future events, has raised $1B, and lifted its valuation to $11 billion in a mega funding round. The prediction market closed the $1 billion funding round led by Sequoia and CapitalG, two prominent venture capital firms. Well-known capital firms like Andreessen Horowitz, Anthos Capital, Neo, and Paradigm all participated in the round.
According to the report, per TechCrunch, the recent fundraise comes just a month after the firm announced a $300 million round at a $5 billion valuation, marking one of the fastest valuation increases in the fintech space.
Sequoia and CapitalG, the firms that are torchlit for Kalshi’s previous fundraising, and their long-time serving firms like Andreessen Horowitz, Paradigm, Anthos Capital, and Neo, were all reluctant to comment on the raise. According to the fintech experts, the recent rise of Kalshi will intensify its rivalry with Polymarket, which is on the verge of raising another funding round at a $12 billion to $15 billion valuation, just weeks after closing a $1 billion round at an $8 billion pre-money valuation.
Fintech experts see Kalshi’s recent growth as a significant part of the sector. The platform allows users to bet on real-world events related to economic indicators, weather, and politics. Kalshi’s trading volume has seen an exponential growth and has exploded to $50 billion a year, which is a 16,500% growth compared to last year. The company recently won a lawsuit against U.S. regulators, becoming freer and autonomous to operate legally in the United States despite the State’s gambling concerns and pushbacks. The significance of Kalshi’s growth also matters when its rival Polymarket is also raising funds, and the competition between these two is showing how prediction markets these becoming widespread and mainstream.
Kalshi’s $1B Raise Signals Institutional Confidence as Prediction Markets Go Global
Prominent crypto platform Crypto Town Hall stated that Kalshi raised $1 billion at an $11 billion valuation.
They mentioned that the prediction market platform had secured a massive new funding round, pushing its valuation into the double-digit billions. They added that the raise signaled accelerating institutional confidence in event-driven markets as Kalshi expanded regulatory and product reach. Kalshi now operates in more than 130 countries, signalling its international growth. It just surpassed $16 billion in total trading volume on November 14, indicating the rapid growth of real-money prediction markets.
Kalshi recently received permission for Americans to use the platform after suing the Commodity Futures Trading Commission (CFTC), and it also engaged in various legal battles with multiple state regulators who claim its functioning and operations are illegal gambling. Kalshi’s rival, Polymarket, also got approval to go live in the United States after its settlement with the CFTC. In July, Polymarket secured a derivatives exchange and a clearinghouse, which helped them to get a green signal to come back to the United States market. Polymarket was fined by the CFTC in 2022 for offering unregistered event contracts; however, the scenario changed when the CFTC issued a No-Action Letter regarding event contracts. CFTC Press Release stated that the Commodity Futures Trading Commission’s Division of Market Oversight and the Division of Clearing and Risk had announced they had taken a no-action position regarding swap data reporting and recordkeeping regulations for event contracts in response to a request from QCX LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization.
The post Kalshi Secures $1 Billion In Fresh Funding As Valuation Jumps To $11 Billion appeared first on BiteMyCoin.
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