Prediction market platform Kalshi is reportedly in advanced talks to raise approximately $1 billion in a new funding round at a valuation of $40 billion. Existing investor Sequoia Capital and Wellington Management are negotiating to lead the round, which could also include Tiger Global Management and Dragoneer Investment Group, according to sources familiar with the matter cited by Reuters.
This development follows Kalshi’s closure of a $1 billion Series F round in May at a $22 billion valuation, which had already doubled its valuation from December levels. Reports indicating Kalshi was seeking funding at a $40 billion valuation first emerged in June, when the Financial Times noted the company was in talks that could close as soon as the third quarter of this year. Cointelegraph contacted Kalshi and the involved investment firms for comment but did not receive an immediate response.
The reported negotiation for a $40 billion valuation represents a rapid escalation in capitalization for Kalshi, effectively doubling its previous valuation within four months. This trajectory suggests strong institutional appetite for prediction markets despite recent regulatory headwinds, including the loss of an appeal that sets up a potential Supreme Court case. The involvement of major players like Sequoia and Wellington indicates confidence in the sector's long-term viability and market structure evolution.
From a compliance and operational risk perspective, the aggressive valuation increase amid ongoing legal challenges highlights a divergence between investor sentiment and regulatory certainty. While the capital injection may strengthen infrastructure and liquidity, the pending judicial review introduces significant uncertainty regarding the platform's future operating framework. Market participants should monitor whether the final terms of the funding round reflect any contingencies related to these unresolved legal matters.
