Prediction market Kalshi, which allows people to bet on future events, announced on Tuesday that it raised a $1 billion funding round at an $11 billion valuation.
The round was led by returning investor Paradigm, and Sequoia Capital, Andreessen Horowitz, Capital G, and other existing backers also participated. Moreover, this latest funding arrives less than two months after the trading platform announced that it raised $300 million at a $5 billion valuation.
Although people drove the trading platform’s popularity last year by using it to predict the outcome of the 2024 U.S. presidential elections, reports indicate that traders now tie a large portion of Kalshi’s activity to sports.
The company expects future growth from businesses that aim to use Kalshi to hedge against specific operational risks, such as government shutdowns or adverse weather conditions.
Polymarket, Kalshi’s main rival, was reportedly in talks to raise another round at a $12 billion to $15 billion valuation in October, according to industry sources.
