Prediction market operator Kalshi is in advanced talks to raise about $1 billion at a $40 billion valuation, nearly doubling its worth in roughly four months. Key Points: Kalshi is in advance
Prediction market operator Kalshi is in advanced talks to raise about $1 billion at a $40 billion valuation, nearly doubling its worth in roughly four months.
Key Points:
- Kalshi is in advanced talks to raise about $1 billion at a valuation near $40 billion.
- Sequoia Capital and Wellington Management may lead, with Tiger Global and Dragoneer also in talks.
- The talks come days after a federal appeals court let Ohio and Tennessee regulate its sports contracts.
Existing investor Sequoia Capital and asset manager Wellington Management are in talks to lead the round, which is expected to be finxalized in the coming weeks, people familiar with the matter said. Tiger Global Management and Dragoneer Investment Group are also in talks to join.
The new round would follow a $1 billion Series F that Kalshi closed in May at a $22 billion valuation, a figure that had already doubled the company's worth from December.
Sequoia co-leader Alfred Lin already holds one of the five seats on Kalshi's board, and the possible participation of Tiger Global and Dragoneer had not been reported before. Kalshi and Tiger Global declined to comment, and the other three firms did not respond to requests.
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The fresh cash would help Kalshi widen its lead over crosstown rival Polymarket, which has struggled with the launch of its U.S. platform and faced an investigation by federal regulators. Polymarket is also discussing a $1 billion raise.
Kalshi overtook Polymarket in market share over the past year, according to Dune Analytics.
The company is building a broader trading platform beyond elections and sports, a push that puts it in competition with CME Group and Intercontinental Exchange, the owner of the New York Stock Exchange.
Some market analysts argue that a $40 billion price tag only holds if Kalshi turns its popularity into an exchange-style business with many active traders and steady, repeat volume. Tighter limits on what contracts it can list could slow that growth.
Legal risks remain, as a federal appeals court ruled on Sept. 25 that Ohio and Tennessee can apply their sports betting laws to the contracts Kalshi lists on sporting events. Tennessee Attorney General Jonathan Skrmetti called the outcome a win for consumer protections, while Kalshi, which says federal commodities regulators hold sole authority over its products, does not expect the ruling to survive further review.
Kalshi's valuation has climbed fast, from $5 billion when it raised $300 million in October 2025 to $11 billion after a $1 billion round in December. Talk of a $40 billion valuation first surfaced in June, with an early report suggesting a deal could close as soon as the third quarter, while Wellington's interest became public in August. The current round would mark an eightfold jump in less than a year.
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