The cofounders of prediction market Kalshi are now officially billionaires—on paper, at least!—as the company
announces that it has raised $1 billion at an $11 billion valuation.
Investors in the round included a number of notable Silicon Valley venture firms, from Sequoia Capital and Andreessen Horowitz to IVP and CapitalG.
Kalshi most recently raised $300 million at a $5 billion valuation. That was in—
checks calendar—October. Phew.
Why is Kalshi so hot, you ask? Founded in 2018, the New York City startup allows people to trade on real-world events.
Who will win the next election? Which Serie A team will claim the scudetto this season? How much rain will Los Angeles receive this month? Kalshi lets you put your money on virtually anything.
One difference with rival Polymarket, though, is that Kalshi is federally regulated and prefers fiat currency. Its chief competitor was, until recently, banned in the U.S. and prefers blockchain-based currencies.
The unanswered question is whether lawsuits will bring down the category before it ever gets off the ground. A
proposed class action lawsuit in New York alleges that “prediction market” is another word for “unlicensed sports gambling operation.” Kalshi
faces similar trouble in Nevada, home to Las Vegas casinos.
—AN 
