Kalshi reaches $22 billion valuation in new funding round
Coatue is leading a $1 billion round for Kalshi, putting the prediction market ahead of Polymarket on valuation, according to the Wall Street Journal.
By Daniel Okafor · Business Editor
2 min read
Kalshi has reached a $22 billion valuation as investors pour new money into the U.S. prediction market company, according to the Wall Street Journal. The reported valuation gives Kalshi a narrow lead over rival Polymarket in a fast-growing and increasingly contested field.
The Journal reported that Coatue Management is leading a $1 billion investment round at the new valuation. A Kalshi spokesperson declined to comment on the fundraising, according to Fortune.
Race with Polymarket
Fortune described Kalshi as the largest prediction market in the United States, a position tied in part to a 2020 approval from the Commodity Futures Trading Commission. The company gained wider attention in January 2025 after adding sports-related wagers, Fortune reported.
The new valuation follows reports that both Kalshi and Polymarket had been seeking valuations of about $20 billion earlier in March, according to the Wall Street Journal. Polymarket also drew attention Thursday by announcing an exclusive partnership with Major League Baseball ahead of the new baseball season, Fortune reported.
The rivalry has extended beyond product launches and funding targets. Fortune reported that Kalshi said in February it would provide free groceries to New Yorkers, and that Polymarket opened its own pop-up grocery store one week later.
Regulatory paths diverged
Kalshi and Polymarket have taken different routes through U.S. regulation. Fortune reported that Kalshi benefited from the CFTC’s 2020 decision to approve its operations, helping establish its position in the domestic market.
Polymarket was barred from operating in the United States in 2022 after the CFTC found that it had offered event contracts without agency approval, according to Fortune. Two years later, the FBI raided the New York City apartment of Polymarket CEO Shayne Coplan, Fortune reported.
In 2025, the CFTC gave Polymarket approval, and the company said it would return to the U.S. market, according to Fortune. That return has added pressure to a sector already drawing investor interest and scrutiny from regulators.
Legal and trading concerns
The growth of prediction markets has brought legal challenges. Fortune reported that Arizona filed criminal charges against Kalshi on Tuesday, accusing the company of operating an illegal gambling operation in the state.
Kalshi also faces more than 20 lawsuits concerning its legal status, according to Fortune. The company’s expanding valuation comes as those cases and state-level enforcement actions keep questions about the sector’s boundaries in focus.
Fortune also reported concerns about insider trading on prediction market platforms. One cited example involved a Polymarket trader who made more than $400,000 from bets tied to Nicolás Maduro’s ouster.
This story draws on original reporting from Fortune.