Prediction market platform Kalshi is reportedly now in advanced talks to raise approximately $1 billion in a new funding round at a valuation of $40 billion, marking a significant milestone in the rapid expansion of the sector.
Existing investor Sequoia Capital and Wellington Management are in talks to lead the round, which could also include prominent financial backers such as Tiger Global Management and Dragoneer Investment Group, people familiar with the matter told Reuters. The discussions highlight sustained institutional appetite for decentralized and event-driven financial forecasting platforms as they capture mainstream attention and liquidity.
This development follows closely on the heels of Kalshi’s previous major capital raise. The company previously closed a $1 billion Series F round in May at a valuation of $22 billion, a figure that effectively doubled its valuation from just a few months prior in December. The momentum behind these successive funding cycles underscores the explosive growth trajectory the platform has experienced over the past year.
Reports that Kalshi was actively seeking funding at a staggering $40 billion valuation first emerged at the beginning of the summer. The Financial Times reported on June 24 that the company was already engaged in early-stage talks to raise funds at that benchmark valuation and could close the transaction as soon as the third quarter of this year. As the third quarter draws to a close, those preliminary discussions appear to have advanced into serious negotiations with major investment firms.
Cointelegraph reached out to Kalshi, Sequoia Capital, Wellington Management, Tiger Global Management, and Dragoneer Investment Group for comment regarding the ongoing funding talks, but did not receive an immediate response from the respective organizations.
The latest fundraising discussions unfold against a complex backdrop of regulatory and legal scrutiny for the prediction market industry. Earlier legal developments, including Kalshi losing a notable appeal that sets up a potential Supreme Court case, have highlighted the unique regulatory hurdles and high-stakes legal battles that event-contract exchanges must navigate as they scale operations in the United States and global markets.
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