- Kalshi doubled its valuation to $22 billion after securing a $1 billion Series F funding round led by major venture firms.
- The centralized prediction market platform, competing with Polymarket, is reporting an annualized revenue run rate surpassing $1.5 billion.
- While viewed as a growing financial tool, the sector faces intense legal scrutiny with Kalshi involved in 19 federal lawsuits across several states.
The prediction marketplace Kalshi has reached a staggering $22 billion valuation after closing a $1 billion Series F funding round, underscoring surging venture capital and retail interest in the sector. The new valuation doubles its worth from just five months ago, with the round led by Coatue Management and backed by Andreessen Horowitz, Sequoia Capital, Morgan Stanley and Ark Invest.
This raise coincides with investors increasingly viewing prediction markets as one of digital finance’s fastest-growing segments. Consequently, Andreessen Horowitz‘s crypto unit recently raised $2.2 billion and identified the sector as a major investment theme. A company spokesperson told Bloomberg that Kalshi’s annualized revenue run rate has surpassed $1.5 billion.
Unlike rival Polymarket, which operates on decentralized infrastructure, Kalshi runs a centralized and federally regulated marketplace. Together, the two platforms accounted for the bulk of over $25 billion in prediction market trading volume last month.
Meanwhile, Kalshi is expanding its crypto ambitions. The company recently appointed John Wang as its head of crypto, and he told Forbes, “We would like to have Kalshi’s prediction markets in every large crypto app.”
However, the sector faces mounting legal and political scrutiny in the United States. According to NPR, Kalshi is involved in at least 19 federal lawsuits over whether its event contracts violate state gambling laws. States including Massachusetts, New Jersey, Arizona, Nevada, Illinois and Connecticut have challenged its operations.
The political pressure has also intensified in Washington, with Democratic lawmakers calling for tighter oversight. In response, Kalshi has expanded its policy bench by bringing on former Obama staffer Stephanie Cutter as a policy adviser.
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