Kalshi Prediction Market Platform Attracts VC Interest at $10-12B Valuations

Kalshi, the prediction market platform, is drawing fresh investor interest at valuations between $10 billion and $12 billion. This surge comes just weeks after the company closed a $300 million funding round at a $5 billion valuation, led by Andreessen Horowitz and Sequoia Capital. Earlier this year, Kalshi had raised $185 million at a $2 billion valuation, backed by Paradigm.

The platform's rapid growth follows a pivotal 2024 court victory that enabled trading on U.S. presidential election contracts, driving activity to record highs. Kalshi has since expanded its licensed markets to include sports outcomes, intensifying competition with rival Polymarket, which recently secured backing from Intercontinental Exchange at an $8 billion valuation.

Despite the growing investor enthusiasm, prediction markets like Kalshi continue to face significant regulatory scrutiny. The sector's potential remains high, but regulatory hurdles could temper its ascent.