Prediction market Kalshi doubles valuation to $22 billion

Prediction market startup Kalshi announced on Thursday a $1 billion Series F round, a late-stage funding round that values the company at $22 billion. Prediction markets are platforms where users bet on future events. This new valuation represents a doubling of the $11 billion valuation the company achieved five months ago, which followed a previous $1 billion Series E funding round. The rapid succession of these two funding rounds highlights the investor interest in the prediction market sector.

The late-stage investment round was led by Coatue. Other participating investors in the Series F round include:

• Sequoia
• Andreessen Horowitz
• Paradigm

These investment firms joined the round as participants, supporting Kalshi’s capital raise as it continues to scale its operations.

Kalshi, alongside its rival Polymarket, has been a key player in the expansion of prediction markets. These platforms are defined as environments where users bet on future events, attracting trading volume. The growth of these platforms has created an expanding sector, with Kalshi and Polymarket emerging as the primary entities operating in this space. This expansion reflects a broader trend of users seeking alternative platforms for speculation and hedging.

According to figures reported by Bloomberg, Kalshi’s annualized revenue exceeds $1.5 billion. This revenue milestone comes alongside an increase in trading activity on the platform, particularly from institutional participants. In a statement, Kalshi reported that institutional trading on the platform has increased 800% over the past six months. The company also stated that it currently hosts 90% of prediction market activity in the U.S. These figures highlight the scale of Kalshi’s operations within the U.S. market.

While Kalshi currently hosts 90% of prediction market activity in the U.S., its position faces potential competition from rival prediction market Polymarket. Polymarket is working to unroll remaining restrictions on its U.S. operations from a ban imposed in 2022. The resolution of these regulatory challenges could alter the competitive landscape of the U.S. prediction market sector, where Kalshi currently hosts 90% of the market activity. The outcome of Polymarket’s efforts to lift these restrictions remains a key factor for the future distribution of market share in the U.S.

Why it matters

Kalshi’s rapid valuation growth reflects the explosive institutional adoption of prediction markets, signaling a shift in how financial actors hedge and speculate on real-world events.