Prediction Market: Kalshi Raises $1B and Doubles Valuation to $22 Billion in Five Months

The prediction market is no longer a niche phenomenon. By closing a $1 billion funding round on May 7, 2026, Kalshi just proved it in the most spectacular way. That’s not all! In less than five months, the platform has also doubled its valuation. It went from $11 billion to $22 billion. A strong signal that institutional investors can no longer ignore!

When Wall Street Bets on Prediction Markets

It’s not just anyone opening the checkbook. The Kalshi Series F funding round was led by Coatue Management, with participation from:

• Andreessen Horowitz;
• Sequoia Capital;
• Morgan Stanley;
• Ark Invest.

Andreessen Horowitz’s crypto arm, a16z crypto, recently raised $2.2 billion for its latest fund. According to them, prediction markets are now a major investment theme.

Dizzying Figures

According to an official press release, Kalshi’s annualized revenue rate exceeds $1.5 billion. And user appetite remains strong. In a single month, Kalshi and its competitor Polymarket together consolidated the bulk of the over $25 billion in volume traded on prediction markets.

Analysis: the sector is shifting into another dimension.

Polymarket relies on a decentralized blockchain infrastructure. Kalshi, meanwhile, operates a centralized and federally regulated marketplace. This allows users to trade on outcomes of real events:

• elections;
• economic data;
• sports…

It’s precisely this regulated framework that reassures institutional investors and makes the difference.

Kalshi recently appointed John Wang as head of crypto. His ambition is clear: to integrate Kalshi’s prediction markets into every major crypto application.

A Growth Under High Legal Tension

Unfortunately, Kalshi’s expansion comes at a cost. The prediction market leader is involved in at least 19 federal lawsuits. These challenge the legality of its event contracts under state gambling laws.

Specifically, some states contest its operations. This includes notably:

• Massachusetts;
• New Jersey;
• Nevada;
• Illinois.

Brazil is also added to the list.

To navigate these turbulent waters, the prediction platform hired Stephanie Cutter as political advisor. She is former Obama advisor.

In any case, the prediction market is becoming one of the most dynamic segments of digital finance. And Kalshi, with one billion dollars in pocket, fully intends to be its central pillar. The question is no longer whether this market will explode. It is to determine how far. Especially since it interests more and more major players.