Key Takeaways
- • Kalshi, the federally regulated U.S. prediction market exchange, raised a $1 billion Series G at a $40 billion post-money valuation, co-led by Wellington Management and Sequoia Capital, according to the company's Thursday announcement.
- • The valuation rose from $22 billion in May, roughly 82% higher in about five months.
- • Kalshi said annualized trading volume across prediction markets, commodities, crypto and perpetual futures has surpassed $1 trillion.
- • CNBC reported that Kalshi worked with 500 institutional entities as of September, which accounted for 25% of trading volume excluding market makers.
- • Proceeds will fund institutional adoption and new products, including indices, single-stock perpetual futures and markets on the price of compute.
Summary
Kalshi, the federally regulated U.S. prediction market exchange, has raised a $1 billion Series G at a $40 billion post-money valuation, co-led by Wellington Management and Sequoia Capital, the company said on Thursday. The valuation is up from $22 billion in May, and Reuters had reported in September that the company was in advanced talks to raise about $1 billion at roughly $40 billion.
The round drew a mix of crossover funds, venture firms and trading firms. Participants included Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading and Balyasny Asset Management, according to Kalshi. The participation of a multi-manager hedge fund and a high-frequency trading firm is notable, and it suggests that event contracts are being viewed less as a consumer novelty and more as an emerging asset class that institutional traders want to price, hedge and make markets in.
Kalshi said annualized trading volume has surpassed $1 trillion across prediction markets, commodities, crypto and perpetual futures. CNBC reported that the company worked with 500 institutional entities as of September, and that excluding market makers those entities accounted for 25% of trading volume. CNBC also reported that growth since May was driven by events including the 2026 FIFA World Cup, the NFL season and election markets ahead of the U.S. midterms.
Kalshi plans to use the capital to grow institutional adoption and launch new products, including indices, single-stock perpetual futures and markets on the price of compute.
The round drew a mix of crossover funds, venture firms and trading firms. Participants included Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading and Balyasny Asset Management, according to Kalshi. The participation of a multi-manager hedge fund and a high-frequency trading firm is notable, and it suggests that event contracts are being viewed less as a consumer novelty and more as an emerging asset class that institutional traders want to price, hedge and make markets in.
Kalshi said annualized trading volume has surpassed $1 trillion across prediction markets, commodities, crypto and perpetual futures. CNBC reported that the company worked with 500 institutional entities as of September, and that excluding market makers those entities accounted for 25% of trading volume. CNBC also reported that growth since May was driven by events including the 2026 FIFA World Cup, the NFL season and election markets ahead of the U.S. midterms.
Kalshi plans to use the capital to grow institutional adoption and launch new products, including indices, single-stock perpetual futures and markets on the price of compute.
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