Kalshi Secures $1 Billion at a $22 Billion Valuation

Kalshi raised $1 billion, valuing the platform at $22 billion.

The prediction platform Kalshi completed a Series F funding round, raising $1 billion. The project’s valuation has increased to $22 billion.

The leading investor was Coatue. Other participants included Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. This marks Kalshi’s third closed round in the past seven months.

The company plans to use the funds to work with institutional clients such as hedge funds, asset managers, and insurance companies. Kalshi also intends to develop block trading tools, risk management products, and broker integration.

According to the company, institutional trading volume has increased by 800% over the past six months. The platform’s annual turnover rose from $52 billion to $178 billion. Kalshi holds over 90% of the prediction market in the United States.

The project’s head, Tarek Mansour, compared the industry’s growth rate to that of the AI sector. He believes the segment could reach a trillion dollars.

In March, the combined trading volume amounted to $25.7 billion. The main drivers were bets on sporting events and crypto assets.

The total turnover of Kalshi and Polymarket (the platform’s main competitor) has exceeded $150 billion since their inception.

At the time of writing, the former holds 57.4% of the market, while the latter holds 30.1%.

In terms of nominal turnover, Polymarket leads with $82.59 billion compared to Kalshi’s $75.9 billion.

Polymarket is in talks to raise $400 million. If successful, the company will be valued at $15 billion.

In April, Bernstein analysts predicted that prediction platforms could grow to $1 trillion.