Kalshi Secures $1 Billion Funding at $11 Billion Valuation as Prediction Markets Gain Institutional Confidence

Kalshi, a leading prediction market platform, , marking a significant milestone in the sector's evolution. The investment, led by Paradigm and supported by Sequoia Capital, Andreessen Horowitz, and other top-tier firms, [underscores growing institutional confidence](https://www.nytimes.com/2025/12/02/business/kalshi-fundraising.html) in prediction markets as a transformative financial asset class. The platform, which enables users to trade on real-world events ranging from elections to sports, has emerged as a key player in a rapidly expanding industry. , [reflecting robust demand for its services](https://www.businesswire.com/news/home/20251202005162/en/) and strategic regulatory clarity.

Strategic Funding and Market Position

The latest capital infusion follows two earlier rounds in 2025, , respectively. The current round, the third this year, positions the company to accelerate its expansion into brokerage integrations, news partnerships, and product diversification. [Investors highlighted the platform's role](https://www.businesswire.com/news/home/20251202005162/en/) in democratizing access to real-time predictive data, a shift that has drawn comparisons to the early days of cryptocurrency. "Kalshi is replacing debate, subjectivity, and talk with markets, accuracy, and truth," stated , the company’s co-founder and CEO.

Founders' Journey and Regulatory Milestones

Kalshi’s co-founders, Tarek Mansour and , . Lopes Lara, a former professional ballerina and MIT graduate, co-founded the company after identifying gaps in traditional financial markets. The pair’s journey began with a Y Combinator application in 2019, followed by a years-long battle to secure regulatory approval. [In November 2020, Kalshi became the first platform](https://www.forbes.com/sites/aliciapark/2025/12/02/kalshi-luana-lopes-lara/) to receive CFTC authorization as a designated contract market (DCM), a distinction that set it apart from blockchain-based rivals like Polymarket.

Market Growth and Competitive Landscape

The prediction market industry has seen explosive growth, with Kalshi and its competitors reporting billions in notional trading volumes. In November 2025, , driven largely by sports-related contracts. [The company's ability to correctly predict outcomes](https://www.forbes.com/sites/aliciapark/2025/12/02/kalshi-luana-lopes-lara/)—such as the 2024 U.S. presidential election weeks in advance—has cemented its reputation as a reliable forecasting tool. Meanwhile, regulatory challenges persist, with some states questioning the taxability of sports contracts. Despite this, Kalshi's founders remain focused on scaling their platform and expanding into new verticals like crypto integration via Solana.

Future Plans and Industry Impact

Kalshi plans to use the new funding to onboard additional institutional liquidity providers and deepen partnerships with brokerages like Robinhood and Webull. The company has also attracted high-profile advisory figures, including , who joined its board in early 2026. [Investors view Kalshi's success](https://www.businesswire.com/news/home/20251202005162/en/) as a harbinger of broader economic shifts, with Paradigm's Matt Huang likening its potential to the early days of crypto. As prediction markets continue to redefine how information is valued and traded, Kalshi's role in legitimizing the sector remains pivotal.