Kalshi Raises $1B at $40B Valuation as Forecast Market Fees Soar

Kalshi Prediction Market raised $1 billion at a valuation of $40 billion in a round co-led by Wellington and Sequoia, joined by a16z, Coatue and Morgan Stanley Investment Management, among others.

What’s the scoop?

• The numbers: Kalshi said its annualized trading volume now exceeds $1 trillion, it has opened more than 30 million accounts, and manages more than 75% of forecast market volume. Its perpetual futures contracts (bets on the price of an asset that never expire) generated $83 billion in volume within months of its launch.

• The plan: The money will be used to fund new products like indices, individual stocks and computer markets, as well as a larger effort to win over institutional traders and expand into Latin America and Europe.

• Zoom out: The increase comes as prediction markets explode. 1kx investment company estimates industry expenses topped $1.5 billion in the third quarter, 19 times higher than a year earlier, with Kalshi and Polymarket responsible for the bulk. On October 30, the 76ers became the first NBA team to partner with Kalshi, days after the league named Kalshi and Polymarket its preferred prediction markets.