Finance · updated 2h ago · 2 min read
Kalshi Seeks $1 Billion Funding At $40 Billion Valuation With Sequoia And Wellington Leading
Kalshi in advanced talks to raise about $1 billion at a $40 billion valuation. Sequoia Capital and Wellington Management expected to lead; Tiger Global and Dragoneer also in talks.
14 outlets told this the same way.
6 of 8 outlets skipped it: sequoia partner Alfred Lin already sits on Kalshi’s board.
14outlets compared
Kalshi seeks $1B
Kalshi, the US-based prediction markets platform, is in advanced talks to raise about $1 billion in a new funding round that would value the company at about $40 billion. Kalshi’s proposed $40 billion valuation would follow a $1 billion round closed just four months earlier, when Kalshi’s valuation stood at 22 billion dollars.
Kalshi’s fundraising talks name Sequoia Capital and Wellington Management as parties in discussions to lead the round. People familiar with the matter also link Tiger Global Management and Dragoneer Investment Group to the potential investor group, with the financing expected to close in the coming weeks.
Investors and trading growth
Kalshi’s latest valuation jump is tied to its trading growth, with the company saying annualised trading volume had tripled from $52 billion to $178 billion over six months. Kalshi also said institutional volume was up 800% over the same period, and the company said it accounted for more than 90% of US prediction market activity.
Kalshi’s pitch to investors in May rested on volume, and Chief executive Tarek Mansour said event contracts "could become a trillion-dollar market." Kalshi’s expansion beyond event contracts into broader derivatives places it in more direct competition with CME Group and Intercontinental Exchange.
Regulatory and legal stakes
Kalshi operates as a designated contract market regulated by the Commodity Futures Trading Commission (CFTC), and the company’s regulatory status is described as a competitive advantage over prediction platforms in less clear jurisdictions. Kalshi’s US legal exposure remains tied to whether some event contracts can be treated as gambling under state laws, and a Sixth Circuit ruling on September 25 addressed disputes involving Ohio and Tennessee.
Tennessee Attorney General Jonathan Skrmetti called the outcome a win for consumer protections, while Kalshi said it does not expect the ruling to survive further review. Kalshi’s next test is whether institutional hedging demand grows fast enough to support a valuation that now rivals established exchange operators.