Kalshi just closed a massive $300 million funding round at a $5 billion valuation, marking a 2.5x jump from its $2 billion price tag just three months ago. The timing isn't coincidental - rival Polymarket announced days earlier that it secured up to $2 billion from the New York Stock Exchange's parent company at an $8 billion valuation. This back-to-back funding frenzy signals that prediction markets have become the hottest battleground in fintech.
The prediction markets space just became a billion-dollar arms race. Kalshi announced it raised over $300 million at a $5 billion valuation, with existing investor Sequoia Capital and newcomer Andreessen Horowitz co-leading the round. Paradigm Ventures, Capital G, and Coinbase Ventures also jumped in.
The funding represents a stunning 2.5x valuation increase from Kalshi's $2 billion price tag in July - just three months ago. But the real story is the timing. This announcement comes mere days after archrival Polymarket revealed it secured up to $2 billion from Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, at a pre-money valuation of $8 billion.
The numbers tell the story of an industry exploding into mainstream consciousness. Kalshi is on track to reach $50 billion in annualized trading volume, according to The New York Times. That's a massive leap from the approximately $300 million volume the platform posted last year. The company also expanded globally, now serving consumers in 140 countries.
Polymarket's valuation surge is even more dramatic - jumping from $1 billion in August to $8 billion pre-money, an 8x increase in just two months. The NYSE backing gives Polymarket serious traditional finance credibility and potentially smooths its path back into the U.S. market.
