Prediction market Kalshi, which allows people to bet on future events, announced on Tuesday that it raised a $1 billion funding round at an $11 billion valuation, confirming TechCrunch’s scoop from last month.
The round was led by returning investor Paradigm, with participation from Sequoia Capital, Andreessen Horowitz, Capital G, and other existing backers. The latest funding comes less than two months after Kalshi announced that it raised $300 million at a $5 billion valuation.
Although the trading platform surged in popularity last year when people used it to predict the outcome of the 2024 U.S. presidential elections, a large portion of Kalshi’s trades are actually tied to sports, according to The New York Times.
Kalshi is reportedly planning to announce a partnership with CNN. Additionally, future growth is expected to come from various companies using Kalshi to hedge against business-specific risks, such as government shutdowns or adverse weather changes.
Polymarket, Kalshi’s main rival, was reportedly in talks to raise another round at a $12 billion to $15 billion valuation, Bloomberg reported in October.
