The prediction platform Kalshi has closed a Series F funding round, raising $1 billion. The company's valuation has now reached $22 billion.
Coatue led the investment, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. This marks Kalshi's third closed round in the last seven months.
The funds will be used to enhance services for institutional clients, including hedge funds, asset managers, and insurance companies. Kalshi also plans to develop block trading tools, risk management products, and broker integrations.
According to the company, institutional trading volume has surged by 800% over the past six months. The platform's annual turnover has increased from $52 billion to $178 billion. Kalshi holds over 90% of the prediction market in the U.S.
Project head Tarek Mansour compared the industry's growth rate to that of the AI sector, suggesting that the segment could reach a trillion-dollar valuation.
In March, the total trading volume was $25.7 billion, driven primarily by bets on sports events and crypto assets.
The combined turnover of Kalshi and Polymarket (its main competitor) has exceeded $150 billion since inception.
As of this writing, Kalshi commands 57.4% of the market, while Polymarket holds 30.1%.
According to nominal turnover, Polymarket leads with $82.59 billion compared to Kalshi's $75.9 billion.
Polymarket is in talks to raise $400 million, which would value the company at $15 billion if successful.
In April, analysts at Bernstein predicted that prediction platforms could grow to $1 trillion.