The prediction market company Kalshi is planning to announce an additional $1 billion in funding this week, according to reporting from the New York Times.
The company is expected to confirm on Thursday it raised the amount in a funding round led by Coatue Management that values the prediction markets startup at $22 billion.
The deal marks the company’s third funding round in seven months, reflecting strong investor interest despite lawsuits from state regulators and concerns over insider trading tied to sports-betting markets.
CEO Mansour highlights room for growth
In a statement released to its website, CEO Tarek Mansour said: “There are few categories in recent history that have scaled this quickly outside of AI. Event contracts could become a trillion-dollar market, and we’re still in the early stages of that transition.”
Philippe Laffont, Founder of Coatue added: “Kalshi is building the leading platform for trading in real-world events. Consumers have already embraced it, and we believe institutions will follow.”
Kalshi explained how it would use the extra money: “Kalshi will use the new capital to scale adoption across hedge funds, asset managers, proprietary trading firms, and insurance companies – unlocking access to trillions of dollars in capital. The company will continue expanding its product suite, including recently-launched block trading capabilities, upcoming risk products, and deeper broker integrations tailored to institutional demand.”
The funding also gives Kalshi fresh impetus as the company faces lawsuits and regulatory scrutiny over its sports-related prediction markets while pushing to expand its reach among institutional investors.
It represents a doubling of the valuation. On December 2nd, 2025, the federally regulated prediction market said it raised $1 billion at an $11 billion valuation, just weeks after securing $300 million at a $5 billion valuation in October.
Legal issues remain for Kalshi
Kalshi’s rapid growth has been accompanied by a stretching list of legal and regulatory challenges tied to its expansion into sports-related prediction markets.
The company has faced lawsuits and cease-and-desist orders from state regulators, including in Nevada and New Jersey, where officials argued that Kalshi’s sports event contracts amounted to unlicensed sports betting under state gambling laws. Kalshi has maintained that its markets are federally regulated derivatives overseen by the Commodity Futures Trading Commission (CFTC), putting them outside state gaming jurisdiction.
Kalshi has also faced scrutiny over the potential for insider trading and market manipulation in prediction markets, as regulators and lawmakers examine whether traders with nonpublic information could gain unfair advantages on event-based contracts.
Such is the political toxicity of prediction markets that lawmakers have voted across both aisles to ban themselves from trading on the platform, a measure both Kalshi and Polymarket have applauded.
Writing in response to the news last week, Mansour posted on social media: ““I applaud the Senate for passing this resolution to ban Senators and their offices from trading on prediction markets. “Kalshi already proactively blocks members of congress and enforces against insider trading. This is a great step to increase trust in our markets by making it an industry standard. Now, let’s pass this in the House!”
Reports suggest Polymarket also eyeing more capital
Prediction market platform Polymarket is reportedly exploring a new fundraising round that could value the company at as much as $15 billion.
A report from The Information last month said the company is seeking roughly $400 million in fresh capital, while also courting additional strategic investors alongside Intercontinental Exchange (ICE), the owner of the New York Stock Exchange. The broader financing package could ultimately total as much as $1 billion.
The talks come months after reports emerged that Polymarket had begun discussions with investors about raising money at a valuation ranging from $12 billion to $15 billion. In October, the company was valued at about $9 billion following ICE’s agreement to invest up to $2 billion, including an initial $600 million commitment.
Investor enthusiasm for prediction markets has accelerated sharply over the past year. Polymarket reached a $1 billion valuation in June after securing $200 million from Peter Thiel’s Founders Fund, before its valuation surged further following ICE’s involvement.
The company is also working to expand beyond consumer trading by developing market-data products based on user activity. The strategy would allow financial institutions to use prediction market trends and sentiment data to inform trading and investment decisions.
