It was only in May that Kalshi raised $1 billion at a $20 billion valuation. Half a year later, that valuation is about to double—and that's the clearest signal in this new funding round. According to The Information, citing people familiar with the matter, the prediction market leader is in talks with Sequoia Capital and Wellington Management to raise at least $750 million at a $40 billion valuation, with the possibility of the round being oversubscribed.
Sequoia isn't a new face here—the Silicon Valley VC firm, which manages roughly $56 billion in assets, already has an executive on Kalshi's board and is clearly looking to double down. Wellington, on the other hand, is extending an olive branch to Kalshi for the first time. The Boston-based firm manages about $1.3 trillion in client assets and has a track record of positioning itself ahead of corporate IPOs. Given that word has already leaked about Kalshi engaging with multiple investment banks to evaluate a potential IPO, it's not hard to connect the dots.
What's propping up this valuation isn't some abstract growth story—it's betting volume tied to sporting events. Fueled by anticipation for the 2026 World Cup, Kalshi's annualized revenue hit $4 billion in July, with over 80% of trading volume coming from sports contracts. By comparison, biggest rival Polymarket posted annualized revenue of only about $1.1 billion over the same period—less than a third of Kalshi's figure. Polymarket hasn't been sitting still either: after securing a $600 million investment from Intercontinental Exchange (ICE), the parent company of the NYSE, at a $15 billion valuation in August, it's reportedly gearing up for a new funding round at a $20 billion valuation. The valuation race between the two platforms is moving at almost the same pace.
One more detail worth adding to this story: Kalshi announced on Wednesday that Jeff Bandman—the legal expert who helped the company secure its CFTC-regulated exchange license back in 2020—is returning to head a newly formed subsidiary, Kalshi Prime, which will focus on margined perpetual contracts. The timing of this appointment alongside the funding news points to the same underlying story: Kalshi isn't just riding the cash flow from sports contracts—it's also looking to build out its trading product lineup more deeply.
This funding round has yet to be finalized. The figures and lead investors mentioned are based on sources cited by foreign media, and the actual terms are still pending official confirmation.
