Kalshi Prediction Market News: Funding, Valuation and Trader Rewards The latest Kalshi Prediction Market News points to a big step up for the company. It is reportedly in advanced talks to ra
The latest Kalshi Prediction Market News points to a big step up for the company. It is reportedly in advanced talks to raise about $1 billion. The round could value the company at around $40 billion. That would be a major moment for the prediction market sector.
It is also ending its volume incentive program, no earlier than October 13. Together, these two developments show how the platform is shaping its growth and business strategy.
At a Glance
Funding: About $1 billion
Potential valuation: Around $40 billion
Previous valuation: $22 billion in May 2026
Potential valuation increase: About 82%
Investors in discussions: Sequoia Capital, Wellington Management, Tiger Global, Dragoneer
Volume incentive program: Ending no earlier than October 13
August trading volume: About $37.17 billion
Potential IPO: Early discussions for the coming years
Reuters reported on September 29 that Kalshi news is in advanced funding discussions. Sources say the round could close in the coming weeks.
The numbers show fast growth. The market was valued at $22 billion after a $1 billion raise in May 2026. The new round would lift that to about $40 billion, a gain of roughly 82%.
Sequoia Capital, an existing investor, is reportedly in talks to lead with Wellington Management. Tiger Global and Dragoneer are also in discussions. These are talks, not a completed deal, and terms can still change. Kalshi and Tiger Global declined to comment. Sequoia, Wellington and Dragoneer did not respond to Reuters.
Source: Wu Blockchain
Kalshi Funding and Valuation TimelineDate
Development
2018
Kalshi founded by Tarek Mansour and Luana Lopes Lara
May 2026
It raises $1 billion at a $22 billion valuation
August 2026
It records about $37.17 billion in trading volume
September 29, 2026
Reuters reports talks for another $1 billion round at about $40 billion
October 13, 2026 or later
Volume incentive program expected to end
Source: Reuters
Why Is Kalshi Ending Its Volume Incentive Program?The program paid traders from reward pools based on their share of eligible volume. Its goal was to boost liquidity and trading activity.
According to The Block, a filing with the CFTC says the program will end effective no earlier than October 13. The filing does not say that every reward or incentive on the platform is ending. It covers this one program only.
The timing fits a wider shift. It appears to be moving from a niche prediction platform toward a larger trading venue. A mature platform may rely less on paid incentives to attract activity.
Kalshi Expands Beyond Traditional Prediction MarketsIt first grew on markets tied to sports and election outcomes. Reuters says the company now wants to offer many more asset classes. The goal is to become a one-stop trading platform.
That plan puts the prediction markets in the same conversation as CME Group and Intercontinental Exchange, the parent of the New York Stock Exchange. Prediction markets are also becoming places where traders take positions on big names such as Nvidia and Apple.
Growth brings scrutiny. Reuters noted rising concerns about investor protection and market oversight. Several lawmakers, including Senator Adam Schiff, have raised questions about how fast the sector is growing.
Kalshi vs Polymarket: Market Growth and Competition
Reuters reports that Kalshi has passed Polymarket in market share over the past year, citing Dune Analytics data. Polymarket has faced struggles around its US launch and a CFTC investigation.
Polymarket is not standing still. It is separately seeking about $1 billion in new funding, and Intercontinental Exchange is among its biggest backers. Both platforms are drawing strong investor interest. It is too early to say which one will lead in the long run.
ARK Invest Adds Kalshi to ETF StrategyOn September 30, Cathie Wood said ARK Invest has added Kalshi to its crypto ETF strategies. She praised the management team and said it is positioned for where prediction markets are heading.
This matters as context for Kalshi's reach, since August trading volume was about $37.17 billion. Note that it is still a private company. This is an investment strategy move, not a public listing.
Source: Cathie Wood
What Could Kalshi's $40 Billion Valuation Mean for Its Next Phase?A $40 billion valuation would show strong investor appetite. It would also give more money to build new markets across more asset classes.
It has held early talks about an IPO in the coming years. CEO Tarek Mansour discussed the idea in a recent CNBC interview. No IPO date or final plan has been announced.
Readers should watch for these next steps:
Completion of the funding round
Any changes to the incentive program
New market launches
Regulatory developments
A formal IPO filing
Two things define this week's Kalshi Prediction Market News. The company may raise $1 billion at a $40 billion valuation, and it plans to end its volume incentive program. Both tie into a push for broader markets and tougher competition with Polymarket. The next weeks will show whether the round closes and how regulators respond.
Disclaimer: This article is for news and informational purposes only. Funding talks, valuations, trading volumes, and IPO plans can change before they are finalized. Prediction market activity and crypto assets carry high risk, including the loss of your full investment. This is not financial advice. Please do your own research and consult a licensed financial adviser before making any decision.
