Kalshi Raises $1 Billion, Boosting Its Valuation to $11 Billion

Source: CoinEdition Original Title: Kalshi Raises $1 Billion, Boosting Its Valuation to $11 Billion Original Link: https://coinedition.com/kalshi-raises-1-billion-boosting-its-valuation-to-11-billion/

Key Highlights

• Kalshi raised $1 billion in the latest fundraising cycle.
• The latest capital raise gives the prediction platform an $11 billion valuation.
• Kalshi recently won a legal battle in a California court.

Kalshi, a prediction market that allows people to bet on future events, has raised $1 billion two months after a previous fundraising cycle that saw the company raise $300 million at a $5 billion valuation.

Kalshi’s latest $1 billion fundraising round values the company at $11 billion, with returning investors including Sequoia and Capital IG leading the process. Other investors involved in the fundraising event include renowned VCs such as Andreessen Horowitz, Paradigm, Anthos Capital, and Neo.

Kalshi’s Recent Legal Boost

Notably, Kalshi’s latest capitalization comes a few days after its landmark legal victory, when a California court denied a motion from three tribes to prohibit Kalshi from operating on tribal lands in the Golden State.

According to the ruling, Kalshi is federally regulated through the Commodity Futures Trading Commission (CFTC). Therefore, the Unlawful Internet Gambling Enforcement Act applies to Kalshi, and its "internet contracts are not bets or wagers under the UIGEA and therefore do not constitute ‘unlawful internet gambling’ even if the contracts are received, placed, or transmitted from persons on Indian lands where internet gambling is illegal.

Ongoing Growth in the Prediction Market

In the meantime, Kalshi’s main rival, Polymarket, is in talks for another fundraising round that would value the company between $12 billion and $15 billion. This comes a few weeks after the prediction platform closed a $1 billion round at an $8 billion pre-money valuation.

The public’s awareness of Kalshi and Polymarket surged last year, ahead of the US presidential election, when both platforms allowed people to bet on the event’s outcome. Besides the presidential election, the platforms’ accuracy in predicting the outcome of New York City’s mayoral election boosted their popularity.

Kalshi users span various nationalities, representing 140 countries. The platform offers betting options covering an unlimited category of events, including politics, sports, and entertainment.