Kalshi Eyes $12 Billion Valuation as Investor Frenzy Sweeps Prediction Markets

US prediction market Kalshi is reviewing investment proposals that could increase its valuation to $10–$12 billion, just two weeks after a $300 million raise at a $5 billion valuation.
Kalshi’s rival, Polymarket, is in talks for a potential $2 billion investment from Intercontinental Exchange at a $9 billion valuation.
Both platforms’ competition is intensifying following a federal court ruling that cleared the way for US election markets, driving activity to record levels.

US prediction market Kalshi is reviewing investment proposals from venture investors that would catapult its valuation by roughly double its current $5 billion valuation.

The news comes just two weeks after it raised over US$300 million (AU$465 million) in a round co-led by Andreessen Horowitz, now at a US$5 billion (AU$7.75 billion) valuation.

Fast-forward today, Bloomberg’s sources say multiple VC investors are offering to fund the company at US$10–$12 billion (AU$15.5–$18.6 billion). “Investors have been eager to back the fast-growing startup, and have discussed funding the company at valuations ranging from $10 billion to $12 billion or higher,” the report reads.

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Polymarket vs. Kalshi

Meanwhile, Rival Polymarket said Intercontinental Exchange intends to invest up to US$2 billion (AU$3.10 billion) at a US$9 billion (AU$13.95 billion) post-money valuation.

Kalshi, founded in 2018, runs a regulated venue for trading contracts on real-world outcomes spanning US elections, macro releases, sports results, political events, etc, similar to Polymarket but regulated under a CFTC license.

However, Polymarket’s CEO said the platform has clearance to operate in the United States after halting there in 2022, as it secured a CFTC license to re-launch its platform in the US market.

A federal court ruling in October 2024 cleared the way for presidential-election markets, lifting activity to record levels, and chief executive Tarek Mansour said this month the exchange has reached an annualised volume of US$50 billion (AU$77.5 billion).

Both platforms have contrasting models, yet the competition between the two is intensifying, and it looks like Kalshi is catching up to Polymarket in terms of notional volume, as per data from Dune Analytics.