Prediction markets are having a moment, and Kalshi is riding that wave straight to Wall Street's radar. The U.S.-based platform just closed a reported $1 billion funding round that values the company at $11 billion, and the numbers behind the hype are pretty remarkable.

Volume Explosion Catches Investor Attention

At Goldman Sachs (GS) private tech conference in Las Vegas, Kalshi apparently stole the show. Attendees couldn't stop talking about the platform, and for good reason.

CEO Tarek Mansour shared some eye-popping growth metrics with investors: trading volume increased sixfold over the past six months. That's not incremental growth—that's a fundamental shift in how people are engaging with prediction markets.

The independent data backs up the excitement. Kalshi hit roughly $50 billion in annualized volume last month, according to CryptoRank. Rewind one year, and that figure was closer to $300 million, as reported by the New York Times. In October alone, the platform processed about $4.4 billion in trades, edging out rival Polymarket's $4.1 billion.

A Dune Analytics dashboard reveals another interesting trend: sports-related contracts now account for about one-third of all activity on the exchange. Turns out people really like betting on—sorry, trading event contracts about—sports outcomes.

Venture Capital Goes All In

This latest raise comes just five months after Kalshi closed a $300 million round at a $5 billion valuation. Yes, the company more than doubled its valuation in less than half a year.

The investor roster reads like a who's who of venture capital: Sequoia Capital, CapitalG, Andreessen Horowitz, Paradigm, Anthos Capital, Neo, and several returning backers reportedly participated in the new deal.

Even competitors seem impressed. "The ceiling is only getting higher for prediction markets," Myriad co-founder Farokh Sarmad told Decrypt, suggesting the sector is entering a phase of accelerated mainstream adoption.

Kalshi itself declined to comment on the funding, which is pretty standard for private companies navigating sensitive fundraising announcements.

Navigating the Regulatory Maze

Here's where things get complicated. Prediction markets exist in a legal gray zone, caught between CFTC-regulated event contracts and state gambling laws. That tension has defined Kalshi's growth strategy.

Last year, Kalshi scored a major victory when it won a lawsuit against the Commodity Futures Trading Commission, securing the right to offer election markets to U.S. users. The CFTC dropped its appeal in May, clearing the biggest federal obstacle.

But state-level battles continue. Kalshi recently filed a federal lawsuit against New York regulators after the state tried to classify some of its sports contracts as gambling products. The company argues that federal commodities law should preempt state rules for markets listed on a CFTC-regulated platform—a legal theory that could shape the entire industry.

Meanwhile, Polymarket—which got pushed offshore after its own CFTC run-in—has now regained approval to operate in the U.S., setting up what could be a fierce competition for American users. The prediction market space is getting crowded, and the regulatory framework is still being written in real time.