Prediction Market Kalshi Raises $1 Billion at $22 Billion Valuation as Institutional Demand Surges

Prediction market platform Kalshi has closed a $1 billion Series F funding round at a $22 billion valuation, marking one of the largest raises in financial technology this year and a signal that institutional adoption of event contracts is moving well beyond the early-adopter phase.

The round was led by investment management firm Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.

Institutional Volume Up 800% in Six Months

The fundraise arrives against a backdrop of rapid growth. Over the past six months, institutional trading volume on Kalshi has increased 800%, while annualised trading volume has more than tripled, rising from $52 billion to $178 billion. The platform now accounts for over 90% of U.S. prediction market activity, as well as the majority of global volume.

The company says institutions are increasingly using event contracts to hedge real-world risk and access continuous, market-based signals on future outcomes, a use case that has historically been served by instruments such as interest rate futures, options, and macro derivatives.

Capital to Target Hedge Funds, Asset Managers, and Insurance

Kalshi will deploy the new capital to scale adoption across hedge funds, asset managers, proprietary trading firms, and insurance companies. The firm is positioning this as an opportunity to unlock access to trillions of dollars in institutional capital that has not yet engaged with prediction markets.

Product expansion plans include recently launched block trading capabilities, forthcoming risk management products, and deeper broker integrations designed specifically for institutional workflows.

"Kalshi is building the leading platform for trading in real-world events. Consumers have already embraced it, and we believe institutions will follow."

Philippe Laffont
Founder, Coatue

"There are few categories in recent history that have scaled this quickly outside of AI. Event contracts could become a trillion-dollar market, and we're still in the early stages of that transition."

Tarek Mansour
Co-founder and CEO, Kalshi

What Are Prediction Markets and Why Do Institutions Care?

Prediction markets allow participants to trade contracts whose payouts are tied to the outcome of real-world events, ranging from macroeconomic data releases and election results to regulatory decisions and weather events. Unlike traditional derivatives, they offer binary, event-driven exposure that can be sized and traded without complex structuring.

For institutional participants, this creates a relatively straightforward mechanism to express a directional view or hedge event risk without entering into over-the-counter agreements or navigating complex product documentation. The appeal is compounded by growing regulatory clarity in the United States, where Kalshi operates as a regulated exchange under the Commodity Futures Trading Commission (CFTC).

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