Chiara Bianchi
Prediction market giant Kalshi has raised over $300 million in a new funding round, boosting its valuation to $5 billion and setting the stage for global expansion across more than 140 countries, according to a recent announcement.
The MIT-founded startup is now on pace to record $50 billion in annualized trading volume, marking a major milestone in its growth trajectory. In September, Kalshi surpassed Polymarket, capturing over 60% of the global market share โ solidifying its dominance in the prediction market space.
Kalshiโs Series D funding round attracted an impressive lineup of investors, including Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG, and Coinbase Ventures. The participation of these heavyweights highlights the increasing interest from top crypto funds in the prediction market sector.
According to Head of Crypto John Wang, Kalshi aims to integrate its platform into every major crypto app within the next 12 months. The company already has distribution deals with Robinhood and Webull, allowing users to trade event contracts directly from those platforms. The global rollout is expected to broaden retail access and strengthen Kalshiโs international presence, especially as Polymarket reenters the U.S. after CFTC approval.
A Compliance-First Approach Pays Off
Kalshiโs success has been driven by its strict regulatory compliance strategy in the U.S. Earlier this year, the CFTC dropped its legal challenge against the companyโs election contracts. However, several U.S. states have since filed lawsuits over sports-related contracts, arguing that some products may conflict with state gambling laws.
Sports Contracts Power Growth
A significant part of Kalshiโs momentum stems from its sports-based markets, including complex parlay contracts that have attracted a surge of new traders. The companyโs valuation has more than doubled from $2 billion after its $185 million Series C funding round.
Competition Heats Up with Polymarket
Earlier this week, Polymarket announced a major investment from Intercontinental Exchange (ICE) โ the parent company of the New York Stock Exchange โ worth up to $2 billion at a $9 billion post-money valuation. While Polymarket continues to grow, Kalshiโs massive funding, regulatory advantage, and expanding global reach make it a strong contender to dominate the space long-term.
