Prediction marketplace Kalshi’s valuation has reached $22 billion after closing a $1 billion Series F funding round, underscoring the growing venture capital appetite for the prediction market amid growing retail adoption.
The new valuation doubles Kalshi’s value from just five months ago. The funding round was led by Coatue Management, with participation from Andreessen Horowitz, Sequoia Capital, Morgan Stanley and Arch Invest.
The growth comes as investors view prediction markets as one of the fastest-growing areas of digital finance. Andreessen Horowitz’s crypto unit, a16z Crypto, recently raised $2.2 billion for its latest fund and has identified prediction markets as a key investment theme.
Kalshi has emerged as one of the leading platforms in the industry. A company spokesperson told Bloomberg that Kalshi’s annual revenue run rate has exceeded $1.5 billion.
Unlike rival Polymarket, which operates on decentralized blockchain infrastructure, Kalshi runs a centralized and federally regulated marketplace that allows users to trade on the outcomes of real-world events, including elections, economic data releases and sports.
Kalshi and Polymarket together contributed more than $25 billion of the estimated market trading volume recorded last month.
Market volume forecast by platform. Source: Bitgate Wallet
Kalshi has also expanded its crypto ambitions. The company recently hired John Wang as head of crypto, and he told Forbes that, “We would like to have Kalshi’s prediction markets in every major crypto app.”
Connected: Polymarket probability of traffic normalization in the Strait of Hormuz increases to 73% by end of May
Regulatory scrutiny intensifies as prediction markets expand
The latest wave of venture support comes as Wall Street analysts argue that prediction markets are evolving beyond retail speculation into institutional financial instruments.
In a recent research note, Bernstein said prediction markets are entering an “institutional era,” driven by demand for bespoke block trades and custom event contracts that allow companies to hedge against specific macro and geopolitical risks.
At the same time, the sector is facing increasing legal and political scrutiny in the United States.
According to NPR, Kalshi is involved in at least 19 federal lawsuits over whether its event contracts violate state gambling laws.
States including Massachusetts, New Jersey, Arizona, Nevada, Illinois, and Connecticut have challenged Kalshi’s operations, arguing that some of its sports and event-based contracts amount to unlicensed gambling.
Political pressure has also intensified in Washington. Democratic lawmakers have called for closer monitoring of prediction markets following concerns over “suspicious trading” linked to geopolitical events.
Source: stephanie cutter
In response, Kalshi has expanded its policy and regulatory bench. The company recently hired former Obama staffer Stephanie Cutter as a policy adviser, a move widely seen as an effort to strengthen its ties in Washington and navigate the growing scrutiny around prediction markets.
Connected: Crypto Biz: There is no consensus in capital
