Prediction-market platform Kalshi is reportedly in advanced talks to raise about $1 billion at a valuation of roughly $40 billion. This has happened just four months after the company raised another $1 billion.
Sequoia Capital is in talks to lead the new round alongside Wellington Management, while Tiger Global Management and Dragoneer Investment Group are also mulling over investments. The talks are private. The size, valuation and investor participation could change before the deal is finalised.
According to a Reuters report, Sequoia is already an investor in Kalshi. Alfred Lin, one of the firm’s co-leaders, also serves on Kalshi’s five-member board, say people familiar with the discussions.
Kalshi raised $1 billion in May at a valuation of $22 billion. If the new round is completed at the reported $40 billion valuation, it would represent a substantial increase in the company’s valuation in a pretty short period.
The latest financing negotiations come as Kalshi expands beyond its traditional prediction-market contracts linked to events such as elections and sports.
NEW: Prediction markets platform Kalshi is in advanced talks to raise about $1 billion at a roughly $40 billion valuation, Reuters reported Tuesday, citing people familiar with the matter.
Sequoia Capital and Wellington Management are in talks to lead the round, with Tiger… pic.twitter.com/rPTa2h0Qy4
— The Block (@TheBlockCo) September 29, 2026
Kalshi was founded in 2018 by MIT alumni Tarek Mansour and Luana Lopes Lara. The company is regulated by the Commodity Futures Trading Commission. Mansour has previously discussed the possibility of a future IPO, although a public listing is not part of the current financing transaction.
The new funding discussions also come as Kalshi competes with Polymarket for activity in the rapidly growing prediction-market sector. Data from Dune Analytics indicates that Kalshi has overtaken Polymarket in market share over the past year.
Polymarket is separately discussing a potential $1 billion financing, according to people familiar with those talks. Intercontinental Exchange is among its major backers.
The rapid expansion of prediction markets has attracted increasing attention from regulators and lawmakers. Platforms are offering contracts linked not only to elections and sports but also to financial markets, economic data, companies and other public events.
That wider product range has raised questions about investor protection, market oversight and the line between prediction markets and traditional financial products. Eleven Democratic senators on the Senate Banking, Housing, and Urban Affairs Committee recently asked for a public hearing on prediction markets.
For Kalshi, additional capital would provide more room to expand its product range and compete for trading activity. The potential involvement of Tiger Global and Dragoneer would also bring additional institutional investors into its shareholder base if the deal goes ahead.
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