Kalshi in talks with Sequoia, Wellington for $750 million fund raise at $40 billion valuation
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Summary
Kalshi, a leading prediction market platform, is in advanced talks with Sequoia Capital and Wellington Management to raise at least $750 million in funding at a $40 billion valuation. This round would increase Sequoia’s stake and mark Wellington’s first investment in Kalshi. The company is also eyeing a potential IPO in 2027.
Why it matters
This funding round, if completed, would significantly raise Kalshi’s valuation from $22 billion in May to $40 billion, underscoring rapid growth in its business. Kalshi claims to hold 95% of the U.S. prediction market revenue and has increased annualized revenue to about $4 billion, driven largely by sports contracts, positioning it as a dominant player in its sector.
Key context
Kalshi previously raised $1 billion in May at a $22 billion valuation. The company is the top U.S. prediction market platform by revenue, ahead of competitors like Polymarket. Most of Kalshi’s revenue comes from sports contracts, particularly associated with events like the 2026 World Cup. Jeff Bandman, instrumental in securing the company’s regulatory status, has returned as CEO of Kalshi Prime, which handles its margin perpetual futures business.
Key numbers and entities
Kalshi aims to raise at least $750 million at a $40 billion valuation. It generated about $4 billion in annualized revenue as of July. Sequoia Capital manages $56 billion in assets and already has a board seat at Kalshi. Wellington Management manages $1.3 trillion in client assets and is making its first investment in Kalshi. Polymarket, a competitor, generated $1.1 billion in revenue for the same period.
What remains unclear
Neither Kalshi nor the mentioned investment firms have publicly confirmed the funding round. The final amount to be raised and the detailed terms of the investment remain unspecified. The source does not flag other open questions.