The American startup Kalshi has just completed a colossal funding round of one billion dollars, bringing its valuation to 11 billion dollars. This operation reflects the massive enthusiasm of investors for prediction markets, a sector in full swing. But will it be able to dethrone its crypto rival Polymarket?
In brief
- •Kalshi secures 1 billion dollars in a funding round led by Sequoia Capital and CapitalG.
- •The platform’s valuation now reaches 11 billion dollars, approaching that targeted by Polymarket.
- •This raise comes just one month after a previous 300 million dollar round.
- •Kalshi offers contracts regulated by the CFTC, unlike Polymarket which operates on the blockchain.
A Meteoric Rise Reflecting a Market in Turmoil
Kalshi has just achieved a remarkable feat in the world of prediction markets. The platform raised 1 billion dollars from a consortium of prestigious investors including Sequoia Capital, CapitalG, Andreessen Horowitz, Paradigm, Anthos Capital, and Neo. This operation boosts its valuation to 11 billion dollars, an impressive figure placing it among the top players.
The most striking element remains the speed of this growth. Just a month ago, Kalshi announced a 300 million dollar funding round at a valuation of 5 billion. In a few weeks, the company has more than doubled its value, demonstrating investors’ voracious appetite for this emerging sector.
The platform is dangerously closing in on Polymarket, its direct competitor in the crypto world. The latter aims for a valuation between 12 and 15 billion dollars. The gap is narrowing, and the battle for sector dominance is fierce.
Kalshi relies on a major asset: regulatory compliance. Supervised by the Commodity Futures Trading Commission (CFTC), it offers perfectly legal event contracts in the United States.
Users can bet on inflation, political results, or other current events. This approach particularly appeals to institutional investors and individuals seeking absolute legal clarity.
Two Opposing Philosophies for the Same Market
The contrast between Kalshi and Polymarket illustrates two radically different visions. On one side, Kalshi embodies the traditional and regulated approach. The platform accepts fiat currencies and guarantees total legal security. Its ambition is to democratize prediction markets for the wider American public.
On the other, Polymarket represents the decentralized philosophy typical of the crypto world. Based on the blockchain, the platform allows users to bet in cryptos on binary events.
Its decentralized operation attracts supporters of transparency and resistance to censorship. No central authority controls the transactions.
This duality reflects a broader debate in the financial ecosystem. Should regulation be favored to reassure traditional investors? Or should decentralization be prioritized to guarantee independence? Both models find their audience.
The sector’s future will probably depend on regulatory factors. If US authorities toughen their stance on unregulated crypto platforms, Kalshi could gain a decisive advantage. Conversely, regulatory easing would favor decentralized players like Polymarket.