The U.S.-regulated prediction market Kalshi has raised over $1 billion in a new financing round, catapulting its valuation to a staggering $22 billion. The deal effectively doubles the company’s market value in just three months, signaling robust investor confidence even as state regulators escalate their crackdown on the industry.
Funding and Growth Metrics
The funding round was led by Coatue Management, according to sources familiar with the matter. This fresh capital follows an $11 billion valuation set in December 2025 during a round led by Paradigm, with continued support from high-profile backers including Sequoia Capital, Andreessen Horowitz, and ARK Invest. The company's annualized revenue run rate has reportedly reached $1.5 billion, driven by a surge in trading volume that exceeded $6.9 billion in March alone.
From Election Predictions to Broad Expansion
While Kalshi originally gained fame for its prediction contracts on the 2024 U.S. elections, its recent growth has been fueled by an aggressive expansion into sports betting, economic indicators, and legislative outcomes. This strategy has cemented Kalshi's leading position in the prediction market space.
Regulatory Paradox: State Charges vs. Federal Support
The fundraising success comes at a paradoxical moment. Earlier this week, Arizona Attorney General Kris Mayes filed 20 criminal charges against Kalshi, alleging the platform is operating an “illegal gambling operation” and facilitating prohibited wagering on state elections. “Kalshi may brand itself as a ‘ prediction market,’ but what it’s actually doing is running an illegal gambling operation… No company gets to decide for itself which laws to follow,” Mayes stated.
However, Kalshi has found a powerful ally in Washington. Michael Selig, the newly appointed Chair of the Commodity Futures Trading Commission (CFTC), publicly defended the platform. Selig characterized the Arizona charges as a “jurisdictional dispute” and called the criminal prosecution “completely inappropriate,” asserting that as a federally registered exchange, Kalshi falls under the exclusive oversight of the CFTC.
Industry Landscape and Outlook
The $22 billion tag places Kalshi slightly ahead of its primary rival, Polymarket, which is reportedly seeking a $20 billion valuation. Together, the two platforms have transformed prediction markets from a niche crypto-adjacent hobby into a cornerstone of the modern financial landscape. Despite the threat of state-level litigation and potential federal legislative hurdles, the $1 billion infusion suggests that Silicon Valley believes the momentum of prediction markets is now irreversible.