Prediction market platform Kalshi said it raised $1 billion in new funding at a valuation of $22 billion, as institutional investors increasingly turn to event contracts for trading and hedging.
The Series F round was led by Coatue and included Sequoia Capital, Andreessen Horowitz (a16z), Paradigm, IVP, Morgan Stanley and ARK Invest, according to a Thursday press release. The news confirmed a Bloomberg report from March about the investment and valuation round.
The firm said it 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.
The fundraising comes as prediction markets have gained momentum in both crypto and traditional finance as companies look for alternative ways to measure probabilities and manage risk. Hedge funds and proprietary trading firms are increasingly using event contracts alongside conventional derivatives to hedge exposure or express macroeconomic views.
The company operates a regulated market where users exchange contracts linked to real-world outcomes, from elections and economic data to sporting and weather events. Traders buy contracts that pay out if a specific event occurs, turning forecasts into tradable markets.
Kalshi said institutional trading volume on the platform increased 800% in the last six months, while annualized trading volume tripled to $178 billion during the same period.
Amid staggering growth, prediction markets have also attracted increasing scrutiny from US regulators and state authorities. Nevada, New Jersey, Illinois and several other states have issued cease-and-desist orders or launched legal challenges against Kalshi, arguing that some event contracts resemble unlicensed sports betting products. Kalshi has responded, saying his federally regulated exchange is under the supervision of the Commodity Futures Trading Commission (CFTC) rather than state gaming regulators.
