Prediction Market Kalshi's Valuation More Than Doubled to $5B in Just 3 Months. Here's Why.

Core Insights - Kalshi, a prediction market platform, is expanding its operations to over 140 countries after launching exclusively in the U.S. in 2021 [1][5] - The platform's valuation surged to $5 billion following a funding round that raised $300 million from notable investors, more than doubling its previous valuation of $2 billion [2][8] - The prediction market industry is experiencing significant growth, with Kalshi's trading volume exceeding $1 billion in early October, a substantial increase from $300 million the previous year [4][6] Industry Trends - Online prediction markets are witnessing a boom in both trading volumes and investor interest, driven by the expansion of offerings and entry into new markets [3][4] - The rapid growth of prediction markets is particularly evident in the sports betting sector, which has become a major growth driver for platforms like Kalshi [6][7] - Minimal regulatory pushback has facilitated the expansion of prediction markets into sports betting, allowing them to compete with more heavily regulated online sports betting operators [7][8] Competitive Landscape - Kalshi's market share in global prediction volume has increased dramatically from 3% a year ago to over 60% as of September [4] - The competitive landscape includes rivals like Polymarket, which recently received regulatory approval to relaunch in the U.S., indicating a growing interest in the prediction market space [5][8]