TLDR
- Kalshi is in advanced talks to raise about $1 billion in new funding at a valuation near $40 billion.
- Sequoia Capital and Wellington Management may lead the round, with Tiger Global and Dragoneer as possible backers.
- The new valuation would mark an 82% jump from the $22 billion price set in May.
- Kalshi has also held early talks about a future stock market listing.
- Rival platform Polymarket is separately seeking roughly $1 billion of its own.
Kalshi is in advanced talks to raise close to $1 billion in new funding. The deal would value the prediction market company at roughly $40 billion.
Kalshi Seeks $1 Billion at $40 Billion Valuation as Sequoia, Wellington, Tiger Global and Dragoneer Circle Round
Reuters reported that prediction market platform Kalshi is in advanced talks to raise about $1 billion from existing and new investors, including Tiger Global and… pic.twitter.com/uAUfNH8o4f
— Wu Blockchain (@WuBlockchain) September 29, 2026
Reuters reported the news on September 29, citing people familiar with the matter. The financing has not closed and Kalshi has not confirmed it publicly.
Existing investor Sequoia Capital and Wellington Management are reportedly discussing leading the round. Tiger Global Management and Dragoneer Investment Group are also named as possible participants.
Kalshi and Tiger Global declined to comment when Reuters asked. Sequoia, Wellington and Dragoneer did not respond to requests for comment either.
The deal is expected to close in the coming weeks, according to Reuters’ sources. Terms could still change before anything is finalized.
This would be a fast jump for Kalshi. The company closed a $1 billion Series F round in May at a $22 billion valuation, led by Coatue.
Other investors in that May round included Sequoia, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest. At the time, Kalshi said institutional trading volume had grown 800% in six months.
Its annualized trading volume rose from $52 billion to $178 billion over that same period. That growth appears to be driving investor interest in a new round.
The $22 billion figure itself had doubled from an $11 billion valuation set just months earlier. A $40 billion valuation would represent about an 82% increase from May.
Reports of a possible $40 billion valuation first surfaced in June. The Financial Times reported at the time that a deal could close by the third quarter of this year.
Why Investors Are Watching Prediction Markets
Prediction markets let users trade contracts tied to real-world events. These include elections, economic data and sports outcomes.
Trading activity across the sector grew fast in 2026. Kalshi took a large share of that growth.
Industry data showed prediction markets recorded $50.6 billion in trading volume in July. Kalshi accounted for $37.7 billion of that total.
Polymarket’s US and international businesses combined for $12.9 billion in the same month. Kalshi has also been expanding into new financial products, including crypto derivatives.
The company holds a different regulatory status than many betting platforms. The Commodity Futures Trading Commission designated Kalshi as a contract market back in November 2020.
IPO Talk and Ongoing Legal Fights
Kalshi has also held early talks about becoming a public company. CEO Tarek Mansour has spoken about a possible future listing, though nothing has been filed.
An August 25 filing with the Securities and Exchange Commission showed Kalshi registered an exempt securities offering. That filing does not confirm terms of the newly reported $1 billion round.
Kalshi still faces legal questions in several states. Courts have issued mixed rulings on whether some of its contracts count as gambling under state law.
A federal appeals court ruled on the issue on September 25, covering disputes in Ohio and Tennessee. Other courts have reached different conclusions in separate cases.
Regulators are also looking at prediction markets tied to stock outcomes. The SEC and CFTC are reviewing how existing rules apply to these newer products.
Kalshi’s closest competitor, Polymarket, is chasing similar funding. Reuters reported Polymarket is discussing a roughly $1 billion raise of its own, following earlier reports of a possible $20 billion valuation.
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