Kalshi completes $1 billion raise at $40 billion valuation

Kalshi has completed a $1 billion funding round at a $40 billion valuation, lifting the prediction-market operator’s value by roughly 82% from the $22 billion attached to its previous round in May. Sequoia Capital and Wellington Management co-led the financing, while Tiger Global Management and Dragoneer Investment Group also invested.

The company plans to use the proceeds to push beyond event contracts into leveraged versions of those contracts, perpetual futures linked to individual stocks and markets for trading compute prices. Kalshi described prediction markets as the starting point for a broader financial exchange, and said it would continue investing in its institutional business.

As we reported in September, Kalshi had been in late-stage talks to raise about $1 billion at roughly the same valuation, although the financing’s final size and terms had then remained unsettled.

Kalshi said it had 500 institutional entities or clients in September. Those institutions, excluding market makers, accounted for 25% of the exchange’s total trading volume.

The new valuation continues a rapid run-up from $5 billion in October 2025 and $11 billion in December 2025. Andreessen Horowitz and Sequoia co-led Kalshi’s $300 million Series D round at the first valuation, while Paradigm led a $1 billion Series E at the second.

The company had already begun expanding its product range in late May, when it announced perpetual futures as its first offering outside prediction markets. The service began with crypto perpetual futures and later added equity indexes and metals after approval from the Commodity Futures Trading Commission.

Kalshi’s growth in prediction markets has been driven by trading around the 2026 FIFA World Cup, the NFL season and U.S. election markets ahead of the midterms. The World Cup and NFL also spurred growth in combo contracts, products similar to sportsbook parlays.

Its sports-related event contracts remain under legal pressure over whether regulation belongs with states or the federal government. Two U.S. appeals courts ruled in August and September that states have authority over those contracts, while a third backed the federal-government argument. Kalshi maintains that its markets fall under the CFTC’s exclusive oversight, and the dispute is likely to reach the Supreme Court.

Chief executive Tarek Mansour said the company was considering a move to public markets, but not before 2027.