Kalshi’s prediction market has reached a $22 billion valuation after closing a $1 billion Series F funding round, underscoring venture capital’s growing appetite for prediction markets amid growing retail utilize.
The up-to-date valuation doubles Kalshi’s value from just five months ago. The financing round was led by Coatue Management, with participation from Andreessen Horowitz, Sequoia Capital, Morgan Stanley and Ark Invest.
The raise comes as investors increasingly view prediction markets as one of the fastest-growing segments 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 dominant platforms in the industry. Company spokesman he said Bloomberg that Kalshi’s annual revenue has exceeded $1.5 billion.
Unlike competitor Polymarket, which operates on a decentralized blockchain infrastructure, Kalshi operates a centralized and federally regulated marketplace that allows users to trade based on the results of real-world events, including elections, economic data releases and sporting events.
Kalshi and Polymarket combined accounted for most of the more than $25 billion in trading volume in the forecast market recorded last month.
Forecast market volume by platform. Source: Bitget Wallet
Kalshi also expanded his crypto ambitions. The company recently appointed John Wang as its head of cryptocurrency, and he he said Forbes said: “We’d love to have Kalshi prediction markets in every major crypto app.”
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Regulatory scrutiny is increasing as prediction markets develop
The latest wave of venture support comes as Wall Street analysts say prediction markets are evolving beyond retail speculation toward institutional financial tools.
In a recent research note, Bernstein said forecast markets are entering an “institutional era,” driven by demand for custom block trades and custom event contracts that allow companies to hedge specific macro and geopolitical risks.
At the same time, the sector faces increasing legal and political scrutiny in the United States.
According to NPR, Kalshi does involved in at least 19 federal lawsuits over whether event contracts violate state gambling laws.
States including Massachusetts, New Jersey, Arizona, Nevada, Illinois and Connecticut are challenging Kalshi’s business, arguing that some of its sports and event contracts constitute illegal gambling.
Political pressure in Washington has also intensified. Democratic lawmakers have called for tighter oversight of forecast markets amid concerns about “suspicious transactions” linked to geopolitical events.
Source: Stephanie Cutter
In response, Kalshi expanded its policy and regulatory stance. The company recently hired Stephanie Cutter, a former Obama staffer, as a policy adviser, in a move widely seen as an attempt to strengthen relationships in Washington and deal with growing scrutiny of forecast markets.
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