Prediction market platform Kalshi has confirmed raising $1 billion in Series F funding, valuing the company at $22 billion. The round was led by Coatue and included Sequoia Capital, Andreessen Horowitz, Paradigm, IVP, Morgan Stanley, and ARK Invest.
The company plans to use the capital to expand institutional services, including block trading tools, broker integrations, and new risk products aimed at asset managers and insurance firms.
Kalshi operates a regulated marketplace where users trade contracts tied to real-world outcomes-from elections and economic data to sports and weather events. Hedge funds and proprietary trading firms increasingly use these event contracts alongside conventional derivatives to hedge exposure or express macroeconomic views.
Institutional trading volume on the platform surged 800% over the past six months, while annualized trading activity tripled to $178 billion.
Despite the growth, prediction markets face increasing regulatory scrutiny. Nevada, New Jersey, Illinois, and other states have issued cease-and-desist orders against Kalshi, arguing some contracts resemble unlicensed sports betting. Kalshi maintains its federally regulated exchange falls under CFTC oversight, not state gambling regulators.