Kalshi is negotiating a new funding round of about $1 billion that would value the prediction-market operator at $40 billion, according to Reuters. That's roughly eight times the $5 billion valuation the company carried in October 2025.
Sequoia Capital and Wellington Management are in talks to lead the investment, Reuters reported Tuesday. Tiger Global and Dragoneer are also participating in the discussions.
None of the parties have confirmed the talks publicly, and the round hasn't closed. Terms could still change.
A valuation that moved in months, not years
The jump from $5 billion to $40 billion in a matter of months stands out even by the standards of recent private-market rounds. Kalshi's business is built on regulated event contracts — markets where users trade on the outcome of everything from economic data to elections.
That model has drawn both attention and scrutiny as prediction markets have grown. The reported interest from Sequoia and Wellington suggests institutional investors see room for the category to expand further, though the company has not disclosed financials that would show whether revenue has scaled alongside its valuation.
Who's at the table
Sequoia Capital is one of the best-known venture firms in Silicon Valley. Wellington Management is a large asset manager better known for public-market investing, which makes its potential role as a lead unusual for a company at this stage.
Tiger Global and Dragoneer, both crossover investors that have backed late-stage tech companies, are also in the mix, according to the report. Their involvement would fit the pattern of a company raising at a size that requires larger checks than a traditional early-stage venture round.
What the round would mean for prediction markets
A $40 billion price tag would put Kalshi among the most valuable private financial-technology companies, and it would set a benchmark for competitors in the prediction-market space. It would also raise the stakes for how regulators treat event contracts, a question that has been unsettled as the sector has grown.
The reported round comes together quickly after the October valuation. That pace is a signal about how investors are pricing the category right now — and about how much of that pricing rests on growth expectations rather than disclosed results.
What happens next
The talks are ongoing, and a deal could be announced in the coming weeks or not at all. Until then, the $40 billion figure is a reported target, not a closed transaction. Watch for confirmation from Kalshi or the named investors, and for any filing or disclosure that would put actual figures behind the valuation.
