Prediction market platform Kalshi has confirmed a $1 billion Series F funding round at a $22 billion valuation, formalising a Bloomberg report from March and putting a number on just how quickly the sector has been re-rated by institutional investors.
The round was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest, according to a press release published Thursday on Kalshi's website. The valuation roughly doubles the $11 billion Kalshi secured just five months ago in its Series E. That round itself came less than two months after a $300 million raise at a $5 billion valuation — meaning Kalshi has roughly quadrupled its valuation in under a year.
The growth metrics behind the raise are striking. Kalshi said annualized trading volume has more than tripled over the past six months, growing from $52 billion to $178 billion, while institutional trading volume specifically surged 800% over the same period. The platform claims over 90% of U.S. prediction market activity and $1.5 billion in annualized revenue, while serving 2 million monthly users.
Kalshi said it will use the new capital to scale adoption across hedge funds, asset managers, proprietary trading firms, and insurance companies, and will continue expanding its product suite, including recently launched block trading capabilities, upcoming risk products, and deeper broker integrations tailored to institutional demand.
"There are few categories in recent history that have scaled this quickly outside of AI," said co-founder and CEO Tarek Mansour. "Event contracts could become a trillion-dollar market, and we're still in the early stages of that transition."
The institutional pivot is the central story here. Kalshi and rival Polymarket built their early audiences on retail speculation around elections and cultural events. The new pitch is different: event contracts as a hedging and information tool for professional money. Whether that market is as large as Mansour suggests remains unproven, but the investor lineup — Morgan Stanley alongside Andreessen Horowitz alongside Paradigm — suggests the thesis is being taken seriously across both Wall Street and Silicon Valley.
The regulatory picture is cloudier. Nevada, New Jersey, Illinois, and several other states have issued cease-and-desist orders or launched legal challenges against Kalshi, arguing that some event contracts resemble unlicensed sports betting products. Kalshi has pushed back, arguing its federally regulated exchange falls under CFTC oversight and that state-level challenges are jurisdictionally misplaced. The tension between federal and state authority over prediction markets remains unresolved, and sits just beneath the surface of every fundraising announcement.
The timing also overlaps with the SEC's decision this week to delay the launch of prediction market ETFs from Roundhill, GraniteShares, and Bitwise — a move that suggests federal regulators are still working out how these products fit existing frameworks. Kalshi and the broader prediction market industry are growing fast enough that those questions are unlikely to wait much longer.
