Prediction markets platform Kalshi has more than doubled its valuation to $11 billion after raising $1 billion in a new financing round, underscoring the rapid rise of event-based trading as a mainstream financial tool. The raise comes just two months after the company secured $300 million at a $5 billion valuation, reflecting accelerating investor interest in platforms allowing users to trade on outcomes in politics, economics, sports and entertainment.

Kalshi is one of the most closely watched companies in the sector, offering regulated binary contracts tied to real-world events. The model has gained traction as markets increasingly explore event contracts not only as speculative instruments but as tools for hedging political and macroeconomic risks. “Markets are starting to utilize them as genuine tools for managing investment, political, and macroeconomic risks,” PitchBook analyst Rudy Yang told Reuters, noting the explosive growth not just of Kalshi but also rivals like Polymarket.

Trading activity on Kalshi has surged dramatically over the past year, with the company reporting weekly volumes exceeding $1 billion — a more than tenfold increase from 2024. The growth comes as prediction markets gain broader visibility among retail traders and institutional investors, with platforms such as Robinhood launching their own prediction hubs earlier this year.

Kalshi’s momentum also follows a key regulatory breakthrough. After a successful court challenge against the U.S. Commodity Futures Trading Commission, the startup secured approval to list event contracts tied to the U.S. presidential election — a milestone that strengthened its position as the only fully regulated prediction market operator in the country.

The latest funding round, a Series E, attracted participation from some of the world’s most influential investors, including Sequoia, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG and Y Combinator. The company said the new capital will be used to accelerate consumer adoption, integrate with additional brokerages, expand media partnerships and broaden its product lineup.

Kalshi’s biggest competitor, Polymarket, is also in fundraising talks and is reportedly targeting a valuation between $12 billion and $15 billion. The parallel growth of both companies highlights the mainstreaming of prediction markets at a pace not previously seen in the sector.

For backers, the appeal is clear: event-based contracts offer a new frontier where financial markets intersect with real-time political, economic and cultural outcomes. With volumes surging and regulatory barriers gradually lifting, Kalshi is positioning itself at the centre of what many investors see as the next major shift in retail and institutional trading behaviour.