Prediction Market Kalshi’s Valuation Jumps to $11B After Reported $1B Raise

Kalshi's valuation has surged to approximately $11 billion after securing $1 billion in an undisclosed funding round, marking one of the fastest increases in the prediction market sector this year. The company saw its annualized trading volume rise to about $50 billion, significantly up from $300 million last year, with $4.4 billion in trading volume recorded in October alone, surpassing its main competitor Polymarket. The funding round was reportedly led by Sequoia Capital and CapitalG, with involvement from Andreessen Horowitz and other notable investors. Kalshi’s growth comes amid shifting regulations affecting U.S. prediction markets, including a key victory against the Commodity Futures Trading Commission that allowed it to offer election market contracts to U.S. users. However, Kalshi continues to face challenges as it navigates state-level regulations treating certain contracts as gambling, exemplified by its lawsuit against New York regulators. The company's expansion and increased trading activity reflect a broader trend towards the normalization of prediction markets in the U.S., highlighting their potential for growth despite regulatory hurdles.

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