Kalshi hits $5B valuation days after rival Polymarket gets $2B NYSE backing at $8B, marking one of the most dramatic weeks yet in the prediction market space. The two leading platforms are fueling investor excitement and reshaping how markets bet on real-world events.
Kalshi, the fast-rising prediction market startup, announced it raised over $300 million in fresh funding at a $5 billion valuation. The round — co-led by Sequoia Capital and Andreessen Horowitz (a16z) — marks a 2.5x surge in valuation since its last fundraise just three months ago when Kalshi was valued at $2 billion.
Major Investors Bet Big On Kalshi’s Growth
Other key backers include Paradigm Ventures, CapitalG, and Coinbase Ventures, reflecting growing institutional confidence in prediction markets. Kalshi also shared that users from over 140 countries can now participate in betting on global events — from elections to economic data.
The company’s trading volume is soaring, too. According to The New York Times, Kalshi is on track to hit $50 billion in annualized trading volume, up from just $300 million last year — a staggering growth that underscores how fast the platform is scaling.
Polymarket’s $2B NYSE Deal Sets The Stage
Kalshi’s massive round came just days after its biggest rival, Polymarket, announced a $2 billion investment from Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange (NYSE) — valuing Polymarket at $8 billion pre-money.
That deal was a huge leap from Polymarket’s $1 billion valuation just two months ago, signaling a new wave of mainstream interest in prediction markets and decentralized finance platforms.
Rivalry Heats Up In The Prediction Market Space
Kalshi and Polymarket have both become synonymous with the rise of regulated betting on real-world events, especially during election cycles. Both startups gained significant traction last year, fueled by public curiosity around political and financial predictions.
While Kalshi operates legally in the U.S., Polymarket has faced regulatory roadblocks. The company was barred from serving U.S. residents since 2022 following a CFTC settlement. However, in a major comeback move, Polymarket acquired a derivatives exchange and a clearing house earlier this year — enabling its reentry into the U.S. market.
In September, Polymarket CEO Shayne Coplan confirmed on X (formerly Twitter):
“Polymarket has been given the green light to go live in the USA by the CFTC.”
What This Means For The Future Of Prediction Markets
The back-to-back mega valuations of Kalshi and Polymarket signal a turning point for prediction markets, once seen as niche platforms on the crypto fringe. Now, with top-tier VC firms and Wall Street backing, the space is becoming a legitimate asset class for event-driven trading.
As Kalshi hits $5B valuation days after rival Polymarket gets $2B NYSE backing at $8B, investors are watching closely to see which platform captures the dominant position — and whether prediction markets will finally break into the financial mainstream.
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