Private markets continue to demonstrate accelerating momentum as Kalshi, a New York–based prediction market, announced a $1 billion Series E funding round at an $11 billion valuation. The financing was led by Paradigm, with participation from Sequoia Capital, Andreessen Horowitz, Meritech Capital Partners, IVP, ARK Invest, Anthos Capital, CapitalG, and Y Combinator.
The round comes just weeks after Kalshi raised $300 million at a reported $5 billion valuation, underscoring the pace at which capital is flowing into high-growth private market platforms. The rapid valuation step-up reflects strong investor conviction in category leaders operating at the intersection of fintech, data, and alternative market infrastructure.
Competitive Capital Flows Accelerate
Kalshi’s raise follows significant activity from its chief competitor, Polymarket, which recently secured up to $2 billion in strategic investment from Intercontinental Exchange, the parent company of the New York Stock Exchange. That transaction reportedly valued Polymarket at $8 billion pre-money, signaling growing institutional interest in prediction markets as a distinct asset class.
Together, these financings highlight how private market capital is consolidating around scaled platforms with meaningful liquidity, network effects, and regulatory positioning.
Hyper-Growth in Trading Activity
Kalshi, which describes itself as the world’s largest prediction market, has experienced extraordinary growth in trading volumes, now exceeding $1 billion per week—an increase of more than 1,000% compared to 2024, according to the company. Since its founding seven years ago, Kalshi has raised approximately $1.6 billion in known funding and was an early participant in Y Combinator’s Winter 2019 cohort.
Beyond their financial appeal, prediction markets are increasingly viewed as real-time sentiment engines, offering insight into how market participants assess outcomes ranging from elections to interest-rate policy.
What This Means for Private Markets
Kalshi’s rapid capital formation and valuation expansion reinforce several defining trends shaping private markets in 2026:
- Private companies are scaling faster and staying private longer, supported by large late-stage financings.
- Institutional investors are targeting platforms with liquidity and data advantages, not just traditional SaaS or enterprise models.
- Secondary market interest is rising, as early investors, employees, and funds seek liquidity prior to IPOs or strategic exits.
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