According to a Bloomberg News report, citing a company spokesperson, with backing from Sequoia Capital and Andreessen Horowitz, Kalshi has raised over $300 million in this new investment round.
Kalshi, a predictions marketplace company, has reportedly achieved a $5 billion valuation in its latest funding round, which is more than double the figure from its last fundraising just a few months earlier.
According to a Bloomberg News report, citing a company spokesperson, Kalshi has raised over $300 million in this new investment round with backing from Sequoia Capital and Andreessen Horowitz. The report added that the platform is looking to expand its services beyond the U.S., reaching over 140 countries, citing the spokesperson. According to Bloomberg, the other investors in the latest raise were Paradigm, CapitalG, and Coinbase Ventures.
It noted that an official announcement from Kalshi is expected to come later on Friday. In June, Kalshi secured a $2 billion valuation from a $185 million round. The round had seen participation from Paradigm and Sequoia as well.
Bloomberg said that by the end of 2025, Kalshi is set to hit about $50 billion in annualised trading volume. The news from Kalshi follows The Wall Street Journal report that Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, is in talks to invest $2 billion in crypto-based prediction market company Polymarket. The deal is expected to value Polymarket at as much as $10 billion.
In September, Edwin Dorsey noted that the duopoly maintained by DraftKings (DKNG) and Flutter Entertainment (FLUT) is now being “disrupted by prediction markets like Kalshi, which often offer customers better odds with deeper order books.”
The news surrounding Kalshi and Polymarket had put pressure on shares of DraftKings and Flutter earlier this week. Shares of DraftKings were down nearly 4% in early trading on Friday, and Flutter shares fell about 2%.
Craig-Hallum on Thursday noted that these sell-offs indicate material risk from predictive markets, but companies have an opposite view. The firm said this is a buying opportunity and that prediction markets were the focal point of discussion this week, with everyone saying it hasn’t had any impact on their business and many explaining why it could be a positive opportunity.
Shares of DraftKings have fallen nearly 9% this year, and Flutter Entertainment stock has lost over 5% of its value year-to-date.
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