Kalshi in talks for $40B raise, nearly double May valuation

Kalshi is negotiating a funding round that would value the U.S. prediction-market platform at $40 billion, according to people familiar with the discussions. The company could complete the round as soon as the third quarter.

In May Kalshi closed a $1 billion Series F led by Coatue with participation from Andreessen Horowitz, Sequoia Capital, Morgan Stanley and Ark Invest. That financing put the company at a $22 billion valuation.

Kalshi’s reported valuation has risen from about $5 billion in October and roughly $11 billion in December to $22 billion in May. A close at $40 billion would represent a marked increase compared with those earlier benchmarks.

Trading on Kalshi’s platform has grown. Token Terminal data showed Kalshi’s monthly notional trading volume in May at $17.9 billion, compared with $7.1 billion for a main rival. Kalshi overtook that rival in trading activity around September after partnering with a retail brokerage to let users trade outcomes of NFL and college football games.

New entrants and established market operators have introduced products tied to event outcomes. One major exchange operator launched binary contracts linked to the S&P 500, and a large social media company has directed staff to develop a prediction-markets mobile app called “Arena.”

Legal and regulatory questions persist. Several states argue that event contracts tied to sports constitute sports betting under state gaming laws. Kentucky filed a lawsuit this month naming five prediction-market platforms, including Kalshi, accusing them of operating unlicensed sports betting platforms. The U.S. Commodity Futures Trading Commission has asserted exclusive federal oversight of prediction markets and has sued state authorities that moved to regulate the platforms.

Kalshi was founded in 2018 by Tarek Mansour and launched publicly in July 2021. The company expanded trading features and distribution partnerships through 2024, a period that included heightened activity ahead of the U.S. presidential election.

Kalshi declined to comment on the fundraising talks.