Prediction market platform Kalshi has closed a $1 billion Series F funding round, catapulting its valuation to $22 billion. The round was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and Ark Invest.
Kalshi now commands 90% of the U.S. prediction market, with 2 million monthly users. Annualized revenue stands at $1.5 billion, while weekly trading volumes have surged to $3 billion-up from $100 million a year ago. Annualized trading volume has more than tripled to $178 billion over the past six months.
CEO Tarek Mansour described the growth as unprecedented outside of AI, noting event contracts could become a trillion-dollar market. Coatue founder Philippe Laffont said consumers have embraced the platform and predicted institutions will follow.
The raise intensifies competition with crypto-native Polymarket, which is reportedly seeking $400 million at a $15 billion valuation. Bernstein projects the prediction market sector will hit $240 billion in volumes this year and $1 trillion by 2030.
Despite rapid growth, the industry faces challenges including state lawsuits and insider trading cases. A U.S. Army soldier recently pleaded not guilty to charges of using confidential information to win over $400,000 on Polymarket.