Kalshi Eyes $40 Billion Valuation in $750 Million Funding Round

Prediction market giant Kalshi is reportedly in advanced talks to raise at least $750 million in a new funding round that would value the company at $40 billion, highlighting its rapid growth amid booming demand for prediction markets.

According to The Information, existing investor Sequoia Capital and Wellington Management are considering leading the round, which could ultimately exceed $750 million. Sequoia, a Silicon Valley venture capital firm with about $56 billion in assets under management, already has representation on Kalshi’s board.

The investment would mark Wellington’s first backing of Kalshi. The Boston-based asset manager oversees approximately $1.3 trillion in client assets and has a history of investing in private companies ahead of initial public offerings. Kalshi CEO Tarek Mansour said in June that the company is considering a potential IPO in 2027.

The proposed financing comes just months after Kalshi raised $1 billion at a $22 billion valuation in May. A $40 billion valuation would therefore represent a sharp increase as the company expands its lead over rival prediction market Polymarket.

Kalshi’s annualized revenue reportedly reached $4 billion in July, driven largely by activity surrounding the 2026 FIFA World Cup. By comparison, Polymarket had reached roughly $1.1 billion in annualized revenue. Sequoia has also said Kalshi claims approximately 95% of the U.S. prediction market.

Sports contracts remain central to Kalshi’s growth, accounting for more than 80% of trading volume. Meanwhile, Polymarket was recently reported to be seeking funding at a $20 billion valuation after Intercontinental Exchange, the owner of the New York Stock Exchange, invested $600 million at a $15 billion valuation.

Kalshi is also expanding beyond its core prediction market business. The company announced that Jeff Bandman, who helped it secure approval as a CFTC-regulated exchange in 2020, is returning as CEO of Kalshi Prime, its margin perpetual futures business.

Kalshi, Sequoia Capital and Wellington Management had not confirmed the reported funding discussions.