Kalshi could be worth $40 billion after new funding

Kalshi has entered advanced talks to raise roughly $1 billion in fresh capital at a valuation close to $40 billion, potentially lifting the prediction-market company’s value by around 82% from May.

Reuters reported on Sept. 29 that Tiger Global Management and Dragoneer Investment Group are among investors discussing participation, citing people familiar with the confidential negotiations. Existing investor Sequoia Capital and Wellington Management are in talks to lead the round.

The financing has not closed, and Kalshi has not announced the round. Reuters said the transaction “is expected to be finalized in coming weeks,” based on comments from its sources. Kalshi and Tiger Global declined Reuters’ requests for comment, while Sequoia, Wellington and Dragoneer did not respond.

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

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Kalshi could nearly double its value again

A $40 billion valuation would represent another sharp increase for the New York-based company.

Kalshi announced a $1 billion Series F financing on May 7 at a $22 billion valuation. Coatue led that round, while Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest participated.

At the time, Kalshi said institutional trading volume had climbed 800% over six months. Annualized trading volume had increased from $52 billion to $178 billion during the same period, according to company figures.

As previously reported, Kalshi’s May financing pushed its valuation to $22 billion, doubling the $11 billion valuation reached several months earlier. The reported $40 billion discussions would raise that figure by another roughly 82%.

Reports of a possible $40 billion valuation first emerged earlier in the summer. In June, Kalshi was already discussing fresh funding at roughly that valuation, though the size and investor group had not been finalized.

The latest Reuters report puts the proposed raise near $1 billion and names Tiger Global and Dragoneer as potential participants for the first time.

Why are investors putting so much money into Kalshi?

Trading activity on prediction markets has risen sharply during 2026, with Kalshi taking a large share of that business.

Prediction markets let users trade contracts tied to the outcome of real-world events, including elections, economic data, sporting events and financial markets. A contract settles according to whether the specified event happens.

Kalshi said in May that its annualized trading volume had reached $178 billion. The company described rising activity from hedge funds, asset managers, proprietary trading firms and other professional investors as a major source of expansion.

More recent market data showed continued growth across the sector. In related coverage, prediction markets recorded a record $50.6 billion of monthly trading volume in July. Kalshi accounted for $37.7 billion of that total, compared with a combined $12.9 billion across Polymarket’s U.S. and international businesses.

Kalshi has been expanding outside the event categories that first drove its popularity. The company has moved into more financial products, including cryptocurrency derivatives, while pursuing increased institutional participation.

Its regulatory status gives it a different structure from many online betting platforms. The U.S. Commodity Futures Trading Commission lists Kalshi as a designated contract market, a status first granted in November 2020. In January 2025, the CFTC modified the designation to permit intermediated futures trading.

Kalshi is already talking about an IPO

Beyond the latest private financing discussions, Kalshi has begun considering whether it could eventually become a publicly traded company.

Reuters reported that the company has held early discussions concerning an initial public offering in the coming years. CEO Tarek Mansour has separately discussed the prospect of an eventual listing, though no filing, timetable or offering size has been announced.

Earlier this year, Kalshi reportedly began informal IPO discussions after its monthly trading volume exceeded $16 billion. The talks were described as early-stage discussions, not preparations for an immediate listing.

A public offering would require more formal steps, including regulatory filings that disclose company finances and the risks attached to its business. Kalshi has not filed a public IPO prospectus.

An Aug. 25 Form D filing with the Securities and Exchange Commission shows that Kalshi filed notice of an exempt securities offering. The filing does not by itself confirm Reuters’ newly reported $1 billion transaction or the proposed $40 billion valuation.

Kalshi’s rapid fundraising has occurred while it faces continuing legal questions over whether some event contracts can be treated as gambling under state laws.

In recent coverage, federal appeals courts have issued conflicting decisions over states’ authority to restrict Kalshi sports contracts. A Sixth Circuit ruling on Sept. 25 involved disputes in Ohio and Tennessee, while earlier cases produced different outcomes in other jurisdictions.

Reuters separately reported that lawmakers and legal experts have raised questions about prediction markets expanding into stock-related contracts, including possible investor-protection and market-oversight issues. The SEC and CFTC are examining how existing securities and derivatives rules apply to some products.

Polymarket is chasing another $1 billion too

Kalshi’s nearest large prediction-market rival is pursuing fresh financing of its own.

Reuters reported that Polymarket is separately discussing a roughly $1 billion capital raise, citing people familiar with those talks. The negotiations remain private and have not resulted in a publicly announced completed round.

As crypto.news previously reported, Polymarket was seeking around $1 billion in financing at a possible $20 billion valuation. The platform had not confirmed the financing at the time, and the reported terms remained preliminary.

Polymarket operates both international and U.S. businesses. The CFTC currently lists QCX LLC, doing business as Polymarket U.S., as a designated contract market following its July 2025 designation.

Competition between the two platforms has intensified as trading volumes have risen. July data cited by crypto.news showed Kalshi handling $37.7 billion, Polymarket’s international venue recording $7.9 billion and Polymarket U.S. reaching $5 billion.

Kalshi’s latest financing discussions could close within the coming weeks if negotiations proceed as Reuters’ sources expect. Until a transaction is signed and announced, the proposed $1 billion raise, $40 billion valuation and final investor lineup remain subject to change.