- Sequoia Capital and Wellington Management co-led a funding round that raised $ 1 billion at a $40 billion valuation.
- The $40 billion valuation is roughly 10x Kalshi’s reported annualised revenue of $4 billion.
- Kalshi plans to use the funds for leveraged event contracts, perpetual futures on individual stocks, markets based on compute prices, and its institutional business.
Kalshi, the first federally regulated U.S. prediction market exchange, reached a $40 billion valuation after a $1bn Series G round co-led by Sequoia Capital and Wellington Management, an 82% increase from the $22 billion valuation in May.
Baillie Gifford, Morgan Stanley Investment Management, Coatue Management and Andreessen Horowitz all joined the round. Reuters also reported that Tiger Global and Dragoneer participated.
Kalshi plans to use the funds for leveraged event contracts, perpetual futures on individual stocks, markets based on compute prices, and its institutional business. According to industry reports, this is Kalshi’s last raise prior to an IPO.
What $40 billion prices in
Founded in 2018 by two MIT classmates, Tarek Mansour and Luana Lopes Lara, Kalshi’s valuation rose from $2 billion in June 2025 to $5 billion in October, $11 billion in December, $22 billion in May, and $40 billion in the latest round.
The G round is the third $ 1 billion raise since December 2025. Venue growth drove the valuation uplift. The Information reported that annualised revenue was well over $4 billion in August, up from over $1.5 billion at Series F. Per our calculations, the new valuation is roughly 10x run-rate revenue.
The G series aims to diversify Kalshi’s revenue. The CFTC approved Kalshi’s Bitcoin perpetuals on May 29, the first such approval in the US. In September, Kalshi reported 500 institutional clients, representing 25% of the volume excluding market makers,
Kalshi’s main rivals are both bigger than Polymarket, which the company has overtaken in market share over the past year. Prediction markets attracted $3.7 billion in VC funding in 2025, according to CB Insights data cited by Financial Planning.
An IPO question
Bloomberg reported that this is likely Kalshi’s final funding round before a potential IPO, which could take place as early as 2027.
The investor mix is shifting. Wellington, Morgan Stanley Investment Management, and Baillie Gifford are all public-market investors rather than crypto venture funds. Baillie Gifford, the Edinburgh-based early investor in both Amazon and Tesla, is the only European investor on the Times list, which is unusual given that the US typically accounts for 22% of European startup deals.
Kalshi’s rationale for going public rests on the legal argument that federal law supersedes state gambling laws. Series G investors have valued that argument at $40 billion. Potential IPO investors will want clarity on which courts have the final say.
