Prediction market platform Kalshi has raised $1 billion in a Series F round, pushing its valuation to $22 billion. Coatue led the round, with Sequoia Capital, Andreessen Horowitz, and Morgan Stanley among the participants. The platform reported $1.5 billion in annualized revenue, 2 million monthly active users, and a 90% market share in the U.S. price prediction sector. Annualized trading volume reached $178 billion, up from $52 billion in six months. Funding rates remain a key metric as the platform scales.CoinDesk reports:

On Thursday, the prediction market platform Kalshi said it hasraised $1 billion, completing its F-round at a $22 billion valuation led by investment firm Coatue. Other participants in this funding round include Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and Ark Invest.

The platform is experiencing rapid growth. Kalshi reports that it currently generates $1.5 billion in annualized revenue, serves 2 million monthly active users, and holds 90% of the U.S. prediction market share. Annualized trading volume has reached $178 billion, more than tripling from $52 billion over the past six months.

Tariq Mansour, co-founder and CEO of Kalshi, said in a statement: “Outside of artificial intelligence, few other areas have grown as rapidly in recent years as event contracts. The market size for event contracts could reach trillions of dollars, and we are still in the early stages of this transformation.”

Philippe Laffont, founder of Coatue, stated in a statement: "Kalshi is building the leading physical event trading platform. Consumers have embraced it, and we believe institutions will follow."

The extremely high valuation reflects intensifying competition in the prediction market space. According to reports, the leading crypto-native prediction market platform, Polymarket, has reached a valuation of...seeking $400 million in fundingvalued at $15 billion. As of March, the combined trading volume across both platforms reached $150 billion.

Investment banks predict that the industry will experience explosive growth in the future. Bernstein estimates that the total market size this year is projected to reach $240 billion, a 370% increase from 2025. The company forecasts that the market will...expand to $1 trillionby 2030, with a compound annual growth rate of approximately 80%.

Although this wave of enthusiasm has drawn attention from users and investors, prediction markets face significant challenges, including lawsuits from various states, and subsequently, the U.S. Commodity Futures Trading Commission (CFTC) sued these states to maintain U.S. regulatory authority at the federal level.

Such platforms must also combat insider trading, which has drawn attention from policymakers. In late April, a U.S. Army soldier was accused of...allegedly using confidential informationU.S. Army Master Sergeant Gannon Ken Van Dyke won over $400,000 in prizes on the Polymarket website by betting on the ousting of Venezuelan President Nicolás Maduro in January.pleaded not guiltyto these charges.