Kalshi Secures $1 Billion Funding at $11 Billion Valuation, Partners with CNN

Prediction Market Leader Closes Billion-Dollar Round

Kalshi, a leading prediction market platform, has successfully closed a $1 billion Series E funding round at an $11 billion valuation, the company announced in a recent statement ^[2]. The round was led by crypto-focused venture capital firm Paradigm, with participation from prominent investors including Sequoia, Andreessen Horowitz, and Cathie Wood's ARK Invest ^[2].

The latest fundraise more than doubles Kalshi's $5 billion valuation from a $300 million funding round completed in October ^[2]. The company stated that the new capital will be used to integrate with additional brokerages, establish partnerships with news organizations, and expand its product offerings ^[2].

Record Trading Volumes Drive Growth

The substantial funding comes amid explosive growth in trading activity across prediction market platforms. Kalshi's trading volume surged to $5.54 billion in November, surpassing its previous record of $4.49 billion set in October, according to data from Token Terminal ^[2].

The platform has experienced approximately 1,000% growth in trading volumes since 2024, with weekly activity now exceeding $1 billion ^[2]. This growth trajectory has positioned Kalshi ahead of its main competitor, Polymarket, which recorded an all-time high volume of $3.76 billion in November, up from $3 billion the previous month ^[2].

CNN Integration Expands Mainstream Adoption

In a significant development for mainstream acceptance, CNN has named Kalshi as its official data partner ^[2]. The collaboration, announced Tuesday, will integrate Kalshi's real-time probability data on political, cultural, and economic events into CNN's programming and newsroom workflows ^[2].

The network plans to incorporate Kalshi's forecasts into on-air analysis and introduce a live ticker displaying market-implied odds during relevant segments ^[2]. Harry Enten, CNN's chief data analyst who specializes in polling and probability-based reporting, will lead the integration ^[2].

Wave of Corporate Partnerships

The CNN partnership represents the latest in a series of major integrations for prediction market platforms. Google recently announced it would display data from both Kalshi and Polymarket in its Google Finance and Search products ^[1][2].

The National Hockey League has signed multi-year deals with both Kalshi and Polymarket, naming them as official prediction market partners ^[2]. Additionally, sports and fantasy sports operator PrizePicks has entered into a multi-year partnership with Kalshi to power its prediction markets offering ^[2].

Robinhood, which has integrated Kalshi's technology, reported in its latest earnings call that its prediction markets offering has become one of its fastest-growing businesses ^[2]. Reports have also emerged that Galaxy Digital is in discussions with both platforms to serve as a liquidity provider ^[2].

Regulatory Concerns Persist

Despite the rapid growth and mainstream adoption, prediction markets face regulatory scrutiny in several jurisdictions. Platforms are under close observation in some regions due to concerns about potential illegal gambling activities ^[1]. In Germany, users of such platforms could face potential penalties ^[1].

The prediction market sector's rapid expansion, combined with increasing institutional investment and mainstream media partnerships, signals a potential shift in how markets process and display real-time information about future events. However, the regulatory landscape remains uncertain as authorities grapple with how to classify and oversee these emerging platforms.