The surging popularity of prediction markets helped Kalshi, one of the biggest players in the sector, raise money this fall at a $5 billion valuation.

Less than two months later, it has collected yet more funds — and more than doubled its valuation.

Kalshi plans to announce Tuesday that it has raised $1 billion at an $11 billion valuation, in its third round of capital this year. The round was led by investment firm Paradigm, an existing backer, and also includes Sequoia Capital, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG and Y Combinator.

“We’re in a massive market with a massive opportunity,” Tarek Mansour, the company’s co-founder and CEO, said in an interview. “We have to scale up to rise to that opportunity.”

The move is the latest sign that p

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