Prediction market platform Kalshi has secured an additional $200 million in funding from new investors Baillie Gifford and Layer Global. The fresh capital expands the company’s recently announced $1 billion Series F financing while maintaining its $22 billion valuation. The valuation marks a sharp jump from roughly $11 billion in late 2025, reflecting how quickly investor interest in regulated prediction markets has accelerated over the past several months.
The funding highlights continued institutional interest in regulated prediction markets, a sector that has grown rapidly following increased retail and professional trading activity tied to political events, sports, macroeconomic indicators, and cryptocurrency-related speculation.
Kalshi previously disclosed that its Series F round was led by Coatue Management, with participation from existing and new investors including Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.
Expansion Fueled by Trading Growth
Founded in 2018, Kalshi operates a federally regulated exchange that allows users to trade contracts linked to the outcome of real-world events. Unlike offshore prediction platforms, Kalshi functions under oversight from the Commodity Futures Trading Commission (CFTC), giving it a regulatory structure that has attracted institutional attention. The company’s growth accelerated after a federal court decision cleared the way for election-related contracts during the 2024 US presidential race. That ruling significantly expanded public awareness of prediction markets and opened the door for broader retail participation.
More recently, sports-related contracts have become a major source of trading activity on the platform. Kalshi has also expanded beyond traditional event contracts this year by introducing crypto perpetual futures products and a commodities-focused trading hub, signaling a broader push into institutional trading infrastructure. User-compiled data from Dune Analytics showed Kalshi’s monthly trading volume surpassed $14 billion in April, more than triple the level recorded in October last year.
People familiar with the company’s finances also said Kalshi’s annualized revenue run rate has exceeded $1.5 billion, reflecting how prediction markets are evolving from niche trading products into larger speculative and hedging venues. Industry data and investor estimates suggest institutional trading volume on the platform has surged significantly over the last six months as hedge funds and proprietary trading firms increased activity.
Industry analysts say the latest funding is likely intended to support infrastructure scaling, compliance operations, and the launch of additional contract categories rather than short-term customer acquisition efforts alone. As trading volumes rise, regulated exchanges face growing demands around liquidity management, market surveillance, and system reliability.
Institutional Investors Move Deeper Into Prediction Markets
Baillie Gifford’s participation is notable because the Edinburgh-based investment manager is traditionally associated with long-term positions in technology and growth companies rather than speculative trading infrastructure. Its involvement suggests some traditional financial institutions increasingly view prediction markets as a potentially durable segment of financial services.
Layer Global’s investment also reflects continued venture capital interest in market infrastructure tied to alternative financial products. Kalshi’s expansion comes as competition in the sector intensifies. Rival prediction platform Polymarket recently secured fresh funding at a reported $15 billion valuation. However, Polymarket continues to face regulatory limitations in the United States, while Kalshi’s regulated status has given it an advantage with domestic institutional participants.
At the same time, Kalshi’s rapid growth has drawn greater regulatory scrutiny, with reports indicating the company has flagged hundreds of suspicious trades this year as prediction markets face increasing concerns around insider information and market surveillance. The broader prediction market industry remains controversial among policymakers and financial regulators. Critics argue event contracts can resemble gambling products, while supporters claim they provide valuable forecasting signals and hedging tools.
Despite those debates, investor appetite for the sector appears to be growing as platforms demonstrate sustained trading demand and stronger revenue generation than many earlier fintech startups.
FAQs
1. Who invested in the latest Kalshi funding round?
Baillie Gifford and Layer Global joined as new investors, contributing an additional $200 million to Kalshi’s broader funding round.
2. What is Kalshi’s current valuation?
The company’s valuation remains at approximately $22 billion following the additional investment.
3. Why are prediction markets attracting investors?
Investors see prediction markets as a growing financial category with increasing trading activity, revenue potential, and applications in forecasting, hedging, and speculative trading.
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