Kalshi closes $1 billion raise at $22 billion valuation as Wall Street piles in

Prediction market platform Kalshi closed a $1 billion funding round at a $22 billion valuation, led by Coatue with backing from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.

The funding follows a sharp increase in institutional participation, with institutional trading volume rising 800% over the last six months.

Kalshi says it now leads the prediction market sector with more than 90% share of US activity and the most global trading volume. Annualized volume has climbed from $52 billion to $178 billion during that stretch.

The company believes prediction markets are entering the mainstream as institutions adopt event contracts for hedging and forward-looking market signals.

The new funding will support expansion across hedge funds, trading firms, asset managers, and insurance companies, alongside continued investment in block trading infrastructure, risk products, and broker connectivity.

Kalshi, founded in 2018 by MIT graduates Tarek Mansour and Luana Lopes Lara, has become a major player in prediction markets after receiving approval from the US Commodity Futures Trading Commission (CFTC).

In recent years, it has attracted increasing institutional investment as interest grows in using prediction markets as financial tools rather than niche betting platforms. While the company has faced regulatory scrutiny, it still stands as the first federally regulated exchange focused on trading future outcomes.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.