Prediction market Kalshi is seeking to raise new capital at a valuation of $40 billion U.S.
The newest valuation is nearly double the $22 billion U.S. that the company was valued at in its last funding round and comes as Kalshi says it is preparing for an initial public offering (IPO)
Media reports say Kalshi is aiming to complete its new funding round by the end of this year’s third quarter. More From Cryptoprowl: The new $40 billion U.S. valuation would put Kalshi ahead of rival prediction market Polymarket, which was last valued at $15 billion U.S. The two platforms are the dominant prediction markets, which enable investors to bet on the outcome of real-world events such as elections, sports, and even the weather.
Competition in the prediction market sector is heating up as new companies enter the space, including Robinhood Markets (NASDAQ: $HOOD) and DraftKings (NASDAQ: $DKNG). Kalshi operates as a federally regulated exchange in the U.S., which sets it apart from Polymarket, which uses blockchain infrastructure and crypto-based settlements. Polymarket is based in Panama and operates outside U.S. regulators’ jurisdiction.