Kalshi Valued at $22B After $1B Raise Amid Legal Scrutiny

Kalshi closed a $1 billion Series F led by Coatue, taking the company’s valuation to $22 billion. Andreessen Horowitz, Sequoia Capital, Morgan Stanley and Ark Invest also participated. A company spokesperson confirmed Kalshi’s annualized revenue run rate has topped $1.5 billion.

The company runs a centralized, federally overseen marketplace where users trade contracts tied to real-world events such as elections, economic data releases and sports outcomes. That model differs from competitors that run prediction markets on decentralized blockchain infrastructure. Kalshi and one large rival together accounted for most of the more than $25 billion in prediction-market trading volume recorded last month.

Venture and institutional interest in prediction markets has increased. One large crypto investment arm recently closed a multibillion-dollar fund and listed prediction markets among its investment themes. Analysts have noted rising demand for large block trades and custom contracts that allow firms to hedge specific macroeconomic and geopolitical risks.

Kalshi faces legal and regulatory challenges. The company is involved in at least 19 federal lawsuits over whether some of its event contracts violate state gambling laws. States that have brought legal actions or regulatory challenges include Massachusetts, New Jersey, Arizona, Nevada, Illinois and Connecticut. Some members of Congress have requested tighter oversight after trades tied to geopolitical events drew scrutiny.

In response, Kalshi expanded its policy and regulatory team and hired former White House staffer Stephanie Cutter as a policy adviser. The company also named John Wang head of crypto; he described the firm’s aim to place Kalshi’s prediction markets into large crypto applications while keeping its centralized, regulated platform.

Investors and company executives point to rapid retail adoption and growing institutional interest as reasons for the new financing. How courts and regulators rule on the current lawsuits and enforcement actions will shape where and how certain prediction contracts can be offered in U.S. jurisdictions.