Kalshi raises $1B; valuation doubles to $22B

Kalshi closed a $1 billion Series F round led by Coatue, the company announced, assigning the prediction-market platform a $22 billion valuation. The new financing follows a prior round in December that valued the company at $11 billion.

The round included participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest. Kalshi said it will use the funds to expand services for hedge funds, asset managers, proprietary trading firms and insurance companies and to build trading products for institutional counterparties.

Kalshi reported that institutional trading volumes rose about 800% over the past six months. Annualized total volume increased from roughly $52 billion to $178 billion over that period, the company said.

The firm operates event markets, or prediction markets, where contracts pay out based on the outcome of real-world events such as economic data releases or political results. Kalshi said it will add features and liquidity tools expected by professional traders as it expands its product suite.

Investors cited the rapid growth in institutional volume as a reason to back the company. Kalshi positioned the markets as complementary to other financial instruments and described an addressable market that could grow as more institutions use event contracts for hedging and trading.

The funding comes as Kalshi faces legal challenges in several U.S. states that seek to apply state gambling laws to prediction markets. Kalshi maintains the Commodity Futures Trading Commission has exclusive jurisdiction over event markets and is defending that position in ongoing litigation. The company has continued to operate and onboard institutional clients while the cases proceed.

Kalshi’s leadership said the new capital will support product development, compliance and scaling efforts. The company did not provide a timetable or specific product road map for its institutional features.

Tarek Mansour, co-founder and chief executive, described the category’s growth and potential: “There are few categories in recent history that have scaled this quickly outside of AI. Event contracts could become a trillion-dollar market, and we’re still in the early stages of that transition.”