Kalshi reached a $22 billion valuation after raising $1 billion in a Series F round led by Coatue, marking the prediction market platform’s third funding round in seven months.
The round also drew participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest, the prediction market platform said in a statement on Thursday.
The fresh capital will be deployed to expand Kalshi's presence among hedge funds, asset managers, proprietary trading firms and insurance companies, according to the statement. The company is also building out its recently launched block trading capabilities, developing new risk-management products and integrating more deeply with brokerages to serve institutional clients.
“Kalshi is building the leading platform for trading in real-world events,” said Philippe Laffont, founder of Coatue. “Consumers have already embraced it, and we believe institutions will follow.”
Kalshi said the raise follows significant operational growth, with institutional trading volume surging 800% over the past six months. The company reported that its annualized trading volume more than tripled during that period, rising from $52 billion to $178 billion. The firm also accounts for more than 90% of U.S. prediction market activity.
“There are few categories in recent history that have scaled this quickly outside of AI,” Kalshi CEO Tarek Mansour said in the statement. “Event contracts could become a trillion-dollar market, and we’re still in the early stages of that transition.”
Broader industry data indicates that Kalshi is not the only platform seeing increased activity. According to a joint report from Polymarket and Bitget Wallet, total prediction market trading volume reached $25.7 billion in March, a 10.6% increase from February.
The report noted that while retail activity remains the primary driver, with 82.3% of users trading under $10,000, sports and crypto-related contracts have dominated the sector, accounting for $10.1 billion and $7.3 billion in first-quarter volume, respectively.
Kalshi and Polymarket's combined lifetime volumes hit $150 billion last month, according to The Block's data.
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Polymarket, which has a larger footprint globally and is working to relaunch in the U.S., is reportedly talking to investors to raise $400 million in new funding at a $15 billion valuation.