Regulated prediction market pioneer Kalshi has raised $1 billion in a Series F funding round, doubling its valuation to $22 billion just five months after its previous capital raise. Led by Coatue with participation from Sequoia and Morgan Stanley, the round follows an 800% surge in institutional trading volume over the last six months. Kalshi now dominates 90% of the U.S. market, with annualized volume skyrocketing from $52 billion to $178 billion. This capital is earmarked to transition the platform into a primary utility for hedge funds and asset managers seeking to hedge real-world risks.
The platform's growth currently mirrors the rapid scaling seen in the artificial intelligence sector, with annualized revenue reportedly surpassing $1.5 billion. Kalshi is deploying the new funds to expand its product suite, including block trading and risk products tailored for insurance companies and proprietary trading firms. This scale-up reflects a shift toward using event contracts as continuous, market-based signals for future outcomes. Philippe Laffont, Founder of Coatue, emphasized the professional shift, stating, “Consumers have already embraced it, and we believe institutions will follow.”
CEO Tarek Mansour noted that the transition is only in its infancy, stating, “Event contracts could become a trillion-dollar market, and we’re still in the early stages of that transition.” As deeper broker integrations go live, the focus remains on whether these markets can become a permanent fixture of global risk management. The company intends to use the capital to unlock access to trillions of dollars in capital by providing a regulated venue for hedging non-financial risks.
