Kalshi Inc., a regulated prediction market platform, raised more than $1 billion in a new financing round announced recently, according to a person familiar with the situation. Coatue Management led the round. The deal values Kalshi at $22 billion, roughly doubling its prior $11 billion valuation from December.
Kalshi offers financial contracts tied to the outcome of real-world events, such as elections and sports games. The company operates as a financial exchange regulated by the Commodity Futures Trading Commission (CFTC), allowing nationwide activity under federal rules.
Funding Overview
- Amount raised: More than $1 billion.
- Valuation: $22 billion post-money.
- Lead investor: Coatue Management invested in Kalshi.
- Comparison to prior round: Doubles the $11 billion valuation from December.
- Revenue: Annualized run rate of $1.5 billion.
- Status: Deal reported by the Wall Street Journal; Kalshi and Coatue declined comment.
The fundraising reflects continued investor interest in prediction markets amid rapid growth.
About the Company
Kalshi Inc. launched in 2018. A court ruling enabled election outcome trading ahead of the 2024 election, spurring popularity. Sports betting now dominates platform activity since Kalshi began offering wagers on sports games early last year. In February, trading volume exceeded $10 billion-12 times the volume from six months prior per Dune Analytics data.
Kalshi faces competition from Polymarket, which has grown similarly but operates mainly overseas. Both platforms handle billions in weekly notional trading volume as of the week of March 9, 2026, per Dune Analytics. Co-founders Tarek Mansour and Luana Lara Lopes became billionaires from the valuation surge.
Investors
Coatue Management led this round and invested in Kalshi. The prior December round saw Paradigm lead the investment in Kalshi, with backing from:
- Sequoia Capital
- Andreessen Horowitz
- ARK Invest invested in Kalshi.
Wall Street firms engage operationally: Susquehanna International Group and Jump Trading act as market makers on Kalshi, while Tradeweb Markets Inc. struck a deal with Kalshi in February for prediction market data integration and also took a stake in the company.
Market Context
Investors show eagerness for prediction markets despite lawmaker concerns over insider trading and manipulation risks, as regulatory scrutiny has intensified recently. Arizona’s attorney general filed criminal charges against Kalshi this week, alleging an illegal gambling operation, which Kalshi rejected, while the CFTC’s new chair supports prediction markets in state legal battles.
Some firms imposed restrictions, with Point72 Asset Management banning employee trading on prediction markets in personal accounts, while Balyasny Asset Management implemented similar measures. Gambling companies have also launched competing prediction market products amid Kalshi’s sports betting expansion, as broader industry momentum continues with developments like Kash raises $2M signaling sustained investor activity.
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