Kalshi in talks to raise $750M at $40B valuation
VC & Fundraising ·
The prediction-market exchange is negotiating a new funding round with Sequoia Capital and Wellington Management that would nearly double its valuation from four months ago.
Kalshi is in advanced talks to raise $750M from Sequoia Capital and Wellington Management at a $40B valuation, according to Coindesk. That figure represents nearly double the $22B valuation Kalshi carried after a $1B round in May.
The talks underscore how quickly investor appetite for regulated prediction markets has grown. Kalshi operates as a designated contract market under CFTC oversight, a status that lets it list event-linked contracts spanning elections, macro data, sports, and crypto prices while functioning under the same regulatory core principles as established futures exchanges. That structure has positioned it differently from offshore or crypto-native prediction platforms, and is part of what has drawn institutional capital at an accelerating pace.
The fundraising talks arrive amid a broader stretch of activity around Kalshi and its market segment. The company has been expanding partnerships and product lines, including a deal to integrate sponsored prediction market odds into Fox News, and plans for a parent portal and AI checks aimed at preventing underage users from exploiting identification loopholes. Competition in the space has also intensified, with Crypto.com entering prediction markets through a High Roller partnership pitched at a $1T opportunity, positioning it against both Kalshi and Polymarket in the US event-contract market.
Regulatory attention has followed the sector's growth. Kalshi, Polymarket, and Hyperliquid are facing bipartisan scrutiny from the House as the CFTC signals forthcoming rules for prediction markets, while separately the DOJ and CFTC have moved to block a state-level prosecution in Arizona targeting Kalshi's sports and election contracts, arguing those products qualify as regulated financial swaps under federal law. Kalshi's chief executive, Tarek Mansour, has said the platform's growth is increasingly coming from categories beyond sports, citing politics, finance, crypto, and culture as its fastest-growing segments, a claim referenced in the wider Kalshi coverage.
Terms of the $750M raise, including whether Sequoia and Wellington would lead the round or how it would be structured, have not been disclosed, and it remains unclear when or whether the deal will close at the reported $40B figure. Two sources are currently tracking the fundraising talks, and further detail on investor composition and timing has yet to emerge.