Prediction market platform Kalshi said Thursday that it has raised $1 billion in a Series F funding round at a $22 billion valuation, with investment firm Coatue leading the round. Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and Ark Invest also participated in the round.

The platform's growth trajectory has accelerated dramatically. Kalshi said it now generates $1.5 billion in annualized revenue while serving 2 million monthly users, capturing 90% of U.S. prediction market activity. Annualized trading volume reached $178 billion, more than tripling from $52 billion over the past six months.

"There are few categories in recent history that have scaled this quickly outside of AI," said Kalshi co-founder and CEO Tarek Mansour, in a statement. "Event contracts could become a trillion-dollar market, and we're still in the early stages of that transition."

Philippe Laffont, founder of Coatue, said in a statement that "Kalshi is building the leading platform for trading in real-world events. Consumers have already embraced it, and we believe institutions will follow."

The massive valuation reflects intensifying competition in the prediction market sector. Polymarket, the leading crypto-native prediction market platform, is reportedly seeking $400 million in funding at a $15 billion valuation. Together, the two platforms hit $150 billion in lifetime volumes in March.

Investment banks project explosive growth ahead for the sector. Bernstein estimates total prediction market volumes will reach $240 billion this year, a 370% increase from 2025. The firm projects the market will expand to $1 trillion by 2030 at a compound annual growth rate of roughly 80%.

While the surge has already drawn interest from users and investors alike, prediction markets have also faced notable challenges—including lawsuits from states, while the CFTC then sues those states in an effort to keep U.S. regulation at the federal level.

Such platforms have also had to combat insider trading, which has also drawn scrutiny from politicians. In late April, a U.S. army soldier was charged with allegedly using confidential info to win more than $400,000 on Polymarket from bets around the January removal of Venezuelan President Nicolás Maduro. U.S. Army Master Sergeant Gannon Ken Van Dyke has pleaded not guilty to the charges.