Prediction market platform Kalshi raised $1B at a $22B valuation as it expands tools for institutional traders.
Prediction Market News
Prediction market platform Kalshi confirmed a $1 billion Series F funding round at a $22 billion valuation on May 7, led by Coatue. The announcement confirmed a Bloomberg report from March. Sequoia Capital, Andreessen Horowitz, Paradigm, IVP, Morgan Stanley, and ARK Invest also participated in the round.
The raise is Kalshi's third funding round in seven months. The company said it will use the capital to expand services for hedge funds, asset managers, proprietary trading firms, and insurance companies. Planned initiatives include block trading tools, new risk management products, and deeper integrations with brokerage platforms.
Trading Volume Tripled in 6 Months
Kalshi's institutional trading volume surged 800% over the past six months. Annualized trading volume more than tripled from $52 billion to $178 billion during the same period. The platform accounts for more than 90% of prediction market activity in the US, serves 2 million monthly active users, and generates $1.5 billion in annualized revenue.
Kalshi operates a federally regulated marketplace where users trade contracts tied to real-world outcomes, from economic data releases and elections to sports and weather events. Traders buy contracts that pay out if a specific outcome occurs, turning probability assessments into financial positions.
Coatue founder Philippe Laffont said Kalshi is building the platform for trading in real-world events and that institutional adoption will follow the consumer activity already underway. CEO Tarek Mansour said event contracts could grow into a trillion-dollar market and that the platform remains in early stages of that transition.
Prediction market activity is rising across the broader sector. A joint report from Polymarket and Bitget Wallet put total sector trading volume at $25.7 billion in March, up 10.6% from February. Sports contracts generated $10.1 billion in Q1 volume, while crypto-related contracts accounted for $7.3 billion. Retail traders active below $10,000 represented 82.3% of all users.
Bernstein projects total prediction market volumes will reach $240 billion in 2026, a 370% increase from 2025, and estimates the market could reach $1 trillion by 2030 at a compound annual growth rate of roughly 80%. Polymarket is separately reported to be seeking $400 million in new funding at a $15 billion valuation.
Despite the growth, the sector has drawn regulatory pressure. Nevada, New Jersey, Illinois, and other states have issued cease-and-desist orders against Kalshi, arguing that certain event contracts constitute unlicensed sports betting. Kalshi maintains that its exchange falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state gambling authorities, and the CFTC has since filed suits against several of those states to preserve federal oversight.
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