Prediction market platform Kalshi has doubled its valuation to $22 billion following a $1 billion Series F funding round spearheaded by Coatue Management. The investment, confirmed on May 7, 2025, was also backed by Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. This marks the third fundraising event for the company in under seven months, with each round roughly doubling the prior valuation. Just five months ago, Kalshi was valued at $11 billion, and less than a year prior, it stood at $5 billion—meaning its worth has quadrupled in that timeframe.
Kalshi CEO Tarek Mansour highlighted the rapid scaling in a statement, noting that event contracts could evolve into a trillion-dollar market and that the platform is still in early stages. The company now commands over 90% of the U.S. prediction market activity, reporting $1.5 billion in annualized revenue from two million monthly users. Annualized trading volume has surged from $52 billion to $178 billion in six months, with institutional trading volume skyrocketing 800% over the same period.
The fresh capital will be deployed to expand adoption among hedge funds, asset managers, proprietary trading firms, and insurance companies. Kalshi also plans to broaden its product lineup, including block trading capabilities launched recently and deeper integrations with brokers. Notably, its first bespoke institutional block trade—brokered by Greenlight with Jump Trading providing liquidity on a carbon allowance contract—signaled a shift toward direct event-risk exposure for large players.
Despite its growth, Kalshi faces regulatory hurdles. States like Nevada, New Jersey, and Illinois have issued cease-and-desist orders or filed legal actions, arguing some event contracts resemble unlicensed sports betting. Kalshi counters that it operates under CFTC oversight and that state challenges are misplaced. Additionally, the SEC has delayed over two dozen proposed prediction market ETFs this week, seeking more details on mechanics and disclosures. Kalshi is also exploring crypto perpetual futures, which would pit it against Binance, Coinbase, and Kraken in derivatives trading.