Kalshi closes $1B Series G, valuation hits $40B
VC & Fundraising ·
The prediction-market exchange more than doubled its valuation from May as Sequoia Capital and Wellington Management co-led the new round.
Kalshi announced Thursday that it has finished raising $1 billion in fresh capital, pushing its valuation to $40 billion, according to CNBC. That figure nearly doubles the $22 billion mark the company reached in its prior funding round back in May, and stands in sharp contrast to the roughly $5 billion valuation it carried as recently as October 2025.
The jump reflects a period of rapid trading growth across Kalshi's markets. The 2026 FIFA World Cup and the NFL season fueled a surge in combo contracts, a parlay-style product, while interest in election-related markets has climbed ahead of the U.S. midterms. Institutional activity has also expanded: the company said in September that it had 500 institutional partners on the platform, which together account for a quarter of total trading volume once market makers are excluded.
Not all of the momentum has been smooth. Two federal appeals courts, in August and September, found that individual states retain authority to regulate sports-related event contracts, a position that conflicts with Kalshi's view that oversight belongs at the federal level. A third appeals court sided with the federal-authority argument, setting up a likely path to the Supreme Court to settle the disagreement.
Kalshi has also been widening its product lineup beyond prediction markets. In late May it launched perpetual futures, becoming the first U.S. exchange to offer the crypto-native trading instrument. With the new funding, the company says it intends to build out leveraged event contracts, perpetual futures linked to single stocks, and markets tied to the price of computing power, framing prediction markets as one piece of a larger financial exchange ambition.
The funding news was also flagged on X, underscoring wider attention to the deal. Kalshi's chief executive, Tarek Mansour, has said a public listing is a conversation the company will eventually need to have given its growth trajectory, though he indicated any move would not happen before 2027. What remains unresolved is how the sports-contract jurisdiction dispute will ultimately be decided, and whether the expansion into leveraged products and compute-price markets will proceed as outlined.