Prediction markets are no longer a niche. Kalshi, one of the top U.S.-based platforms, just closed a $1 billion Series F round at a $22 billion valuation — double the $11 billion from its previous round in December. The round was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.
Kalshi plans to use the fresh capital to scale adoption among hedge funds, asset managers, proprietary trading firms, and insurance companies. The company aims to build tailored products for these institutions and unlock trillions in capital. Institutional volumes have already surged 800%, pushing the platform's annualized volume from $52 billion to $178 billion in six months.
Regulatory battles intensify
Growth hasn't been without friction. Kalshi is currently fighting lawsuits in multiple states where regulators seek to apply local gambling laws to prediction contracts. The Commodity Futures Trading Commission (CFTC) argues it has exclusive oversight over event markets. The outcome of these legal battles could set a precedent for the entire industry.
Co-founder and CEO Tarek Mansour remains bullish: “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.” He believes prediction markets have not yet reached mainstream adoption, leaving room for exponential growth. That conviction — plus the backing of top-tier VCs and banks — signals institutional capital is ready to bet big, even as the regulatory landscape remains uncertain.