Prediction market platform Kalshi has secured $1 billion in Series F funding at a $22 billion valuation, marking its third round in seven months. The round was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz (a16z), Paradigm, IVP, Morgan Stanley, and ARK Invest.
The company plans to use the capital to expand institutional services, including block trading tools, broker integrations, and new risk products for asset managers and insurance firms. Institutional trading volume on Kalshi jumped 800% over the past six months, while annualized trading volume more than tripled to $178 billion. Kalshi claims it now accounts for over 90% of U.S. prediction market activity.
“Kalshi is building the leading platform for trading in real-world events,” said Philippe Laffont, founder of Coatue. CEO Tarek Mansour added, “Event contracts could become a trillion-dollar market, and we’re still in the early stages of that transition.”
The fundraising underscores growing institutional interest in event contracts as tools for hedging and expressing macroeconomic views. A joint report from Polymarket and Bitget Wallet showed total prediction market trading volume reached $25.7 billion in March, with sports and crypto-related contracts leading at $10.1 billion and $7.3 billion, respectively. Kalshi’s main rival, Polymarket, is reportedly raising $400 million at a $15 billion valuation, and the two platforms have surpassed $150 billion in combined lifetime volume.
Amid this growth, Kalshi faces regulatory headwinds. Several U.S. states, including Nevada and New Jersey, have issued cease-and-desist orders, arguing that some event contracts resemble unlicensed sports betting. Kalshi maintains that its federally regulated exchange falls under CFTC oversight, not state gambling rules.
