U.S. prediction market platform Kalshi reportedly achieved an $11 billion valuation after completing a $1 billion funding round. TechCrunch first reported this information through a source familiar with the transaction. This valuation increase represents the prediction market sector’s fastest growth this year. Weeks earlier, the company secured $300 million at a $5 billion valuation in October. Trading activity, market depth, and user adoption expanded throughout this year’s final quarter.

Last month, Kalshi’s annualised trading volume hit approximately $50 billion. Kalshi surpassed Polymarket, its primary competitor, in recent performance metrics. Last month’s data shows Kalshi generated approximately $4.4 billion in trading volume. Polymarket recorded $4.1 billion during the same period. The gap indicates Kalshi’s market dominance. Sports-related markets account for about one-third of bets on Kalshi. A Dune dashboard displays this breakdown.

September marked the beginning of steady weekly notional volume increases across prediction markets. The same dashboard maintainer tracks this broader market data. Sequoia Capital and CapitalG reportedly led this funding round. Andreessen Horowitz, Paradigm, Anthos Capital, Neo, and other returning backers participated. “Kalshi’s raise just shows the ceiling is only getting higher for prediction markets, and we haven’t seen anything yet,” stated Farokh Sarmad.

He co-founded and serves as president of rival prediction market platform Myriad. Kalshi refused to provide comments for this article. Decrypt contacted all named investors and will update when responses arrive.

Prediction Markets and Regulators

U.S. prediction markets have historically encountered legal challenges from regulators. These platforms exist between regulated derivatives and prohibited gambling activities. Jurisdictional tensions shaped the industry’s development patterns. Regulatory uncertainty created growth limitations. Last year, Kalshi defeated the Commodity Futures Trading Commission in court. The victory allowed offering election markets to U.S. users.

Domestic growth accelerated following this ruling. State regulators opened new disputes, viewing certain contracts as gambling products. Federal derivatives law conflicts with state gambling statutes in these cases. Multiple jurisdictions claim authority over prediction market contracts. The Commodity Futures Trading Commission dropped its appeal against Kalshi’s victory in May. This case permitted the company to offer U.S. contracts on election outcomes.

Several state regulators maintain concurrent disputes with the company. They argue that Kalshi’s contracts fall under gambling statutes rather than commodities law. Polymarket, Kalshi’s rival, received CFTC approval to operate in the U.S. months later. Years before, regulators fined and pushed the platform offshore. Allegations claimed Polymarket failed to comply with federal policies. The recent approval marks a regulatory shift.