TL;DR
- Kalshi is negotiating a funding round of at least $750M with Sequoia Capital and Wellington Management, at a $40 billion valuation.
- The platform had already raised $1 billion in May at a $22 billion valuation, meaning the new figure would nearly double that amount.
- With 95% market share in the U.S. and $4 billion in annualized revenue, the firm leads the prediction markets segment.
Kalshi, the CFTC-regulated prediction markets platform, is negotiating a new funding round of at least $750 million at a $40 billion valuation, according to a report by The Information citing sources with knowledge of the matter. The talks involve Sequoia Capital and Wellington Management as potential lead investors, and the amounts could exceed the figure initially mentioned.
Sequoia is already among the company’s current investors and has an executive on its board. The Silicon Valley firm manages $56 billion in assets. For Wellington, a Boston financial giant with $1.3 trillion in assets under management, this round would represent its first investment in Kalshi. The firm has a track record of entering companies’ capital in pre-IPO stages, a relevant detail given that CEO Tarek Mansour stated in June that the company is considering an initial public offering for 2027.
Kalshi Consolidates Its Position as Undisputed Leader
The previous round, closed in May, had set the valuation at $22 billion after raising $1 billion. The new deal would nearly double that figure in just three months, reflecting accelerated growth in revenue and volume. The platform’s annualized revenue climbed to $4 billion in July, driven primarily by contracts tied to the 2026 World Cup.
During the same period, its main competitor, Polymarket, recorded $1.1 billion in revenue. Sequoia Capital recently described Kalshi as the platform that “claims 95% of the market share in the U.S.” within its industry. Sports contracts account for more than 80% of the company’s total volume.
Additionally, Kalshi announced the return of Jeff Bandman, the attorney who in 2020 helped secure the license that enabled the company to operate as a CFTC-regulated exchange. Bandman will take on the role of CEO of Kalshi Prime, the unit focused on margined perpetual futures.
