Kalshi draws investor interest at a reported $10 billion valuation amid rapid growth

Prediction market Kalshi is receiving funding offers from venture capital investors that could value the company at more than $10 billion, reports Bloomberg, citing unnamed sources familiar with the matter.

The development comes just weeks after Kalshi announced a $300 million funding round at a $5 billion valuation. Investors have expressed strong interest in the fast-growing platform, reportedly discussing investments that could value the company between $10 billion and $12 billion or higher.

Earlier this month, Kalshi closed a funding round co-led by Andreessen Horowitz and Sequoia Capital. In June, the company raised $185 million at a $2 billion valuation in a round led by crypto-focused firm Paradigm.

Kalshi, founded in 2018 in New York, lets users trade on real-world events—from elections to sports outcomes. A court win last October allowed the company to offer election-related contracts, boosting trading volumes. It has also expanded into nationwide sports contracts, helping trading surge for Kalshi and rival Polymarket.

One person familiar with Kalshi’s fundraising discussions told Bloomberg that additional capital could help the company compete more aggressively in a growing and fierce sector.

The surge in interest reflects broader trends as Wall Street firms and gambling companies explore partnerships with prediction markets. This week, the National Hockey League signed multiyear deals with both Kalshi and Polymarket, marking the first major league collaboration with the platforms.

Meanwhile, Intercontinental Exchange Inc., owner of the New York Stock Exchange, announced plans to invest up to $2 billion in Polymarket at a valuation of roughly $8 billion, up from $1 billion earlier this year.

Experts noted that preemptive venture capital offers are increasingly common in hot sectors, with investors moving quickly to secure stakes before formal fundraising processes. Kalshi and Polymarket are among the few breakout areas attracting significant capital outside of artificial intelligence.

Despite growth, regulatory uncertainty remains. Although the Commodity Futures Trading Commission has approved Kalshi’s expansion into new markets, state gaming regulators, who traditionally oversee sports betting, have resisted in court. Legal questions also remain around market manipulation and insider trading.

Kalshi co-founder and CEO Tarek Mansour, in a recent post on X, said that the company had reached $50 billion in annualized trading volume.