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Crypto Predictions Platform Kalshi Raises $1 Billion to Fuel Expansion

New York - In the latest sign of the booming demand for prediction market platforms, Kalshi has secured $1 billion in fresh funding to scale its real-time betting exchange.

The Series E round, led by crypto-focused investment firm Paradigm, values Kalshi at a hefty $11 billion - just over a month after its previous $300 million raise at a $5 billion valuation. The rapid increase underscores the breakneck growth trajectory of the predictions market space, which has seen rival Polymarket also land a $2 billion strategic investment from exchange giant Intercontinental Exchange.

Kalshi, which calls itself the world's largest prediction market, has seen its trading volumes surge more than 1,000% over the past year to now exceed $1 billion per week. The 7-year-old company has now raised a total of $1.6 billion, making it one of the best-funded players in the burgeoning sector.

"Prediction markets are quickly becoming a cultural phenomenon, providing unique insights and financial opportunities that traditional markets can't match," said Kalshi co-founder Tarek Mansour. "This new capital will allow us to accelerate our product roadmap and reach an even wider audience of traders and risk managers."

Beyond wagering on sports and political events, Kalshi's platform also enables users to bet on the release date of sensitive government documents, the timing of major corporate announcements, and other real-world outcomes. The company says its markets offer a transparent window into collective expectations around future events.

The explosive growth of Kalshi and Polymarket underscores how prediction markets are carving out a larger role in the broader financial ecosystem. Investors see the platforms as powerful tools for price discovery, volatility trading and risk management - functions traditionally dominated by more regulated exchanges.

However, the rise of these lightly supervised betting venues has also drawn scrutiny from US financial regulators, who are grappling with how to apply existing rules around gambling, futures trading and securities markets. Kalshi itself has faced enforcement actions from the Commodity Futures Trading Commission over alleged violations.

Still, with deep-pocketed backers like Paradigm, Andreessen Horowitz and Sequoia, Kalshi appears well-positioned to continue expanding its reach. The company said it plans to use the new funds to grow its engineering team, develop new products and onboard more users to its prediction exchange.

"Kalshi is at the forefront of a revolution in how people access information and manage risk," said Paradigm co-founder Matt Huang. "We're thrilled to partner with them as they build the future of financial markets."