Author: CoinDesk
Compiled by Deep潮 TechFlow
Shenchao Summary: Kalshi, the leader in prediction markets, raised $1 billion in May at a $22 billion valuation; now it’s seeking at least $750 million from Sequoia and Wellington at a $40 billion valuation. With annual revenue surging to $4 billion and sports contracts accounting for 80% of trading volume, Kalshi is eyeing an IPO by 2027—compliant prediction markets are rapidly becoming one of the most aggressively funded sectors in capital.
Image: Luana Lopes Lara, Co-founder and COO of Kalshi. Source: Getty Images / Anna Webber
According to people familiar with the matter, Kalshi is in advanced talks with Sequoia Capital and Wellington Management to raise at least $750 million at a $40 billion valuation.
This round of financing will increase Sequoia’s existing stake and marks Wellington’s first investment in Kalshi. The prediction market platform is considering an initial public offering (IPO) in 2027.
In May, Kalshi raised $1 billion at a $22 billion valuation and currently generates approximately $4 billion in annual revenue, primarily from sports contracts. The company claims to hold 95% of the U.S. prediction market share by revenue.
Predictive market leader Kalshi is in advanced talks for a new $750 million funding round at a $40 billion valuation, according to people familiar with the matter, as reported by The Information.
According to insiders, Sequoia and Wellington, both existing investors in Kalshi, are considering leading this round, with funding potentially exceeding $750 million. Sequoia, based in Silicon Valley, manages $56 billion in assets and already has one executive serving on Kalshi’s board.
For Wellington, the Boston-based financial giant managing $1.3 trillion in client assets, this would be its first investment in Kalshi. Wellington has previously made private investments in the company prior to its public listing. Kalshi’s CEO, Tarek Mansour, said in June that the company is considering an IPO in 2027.
In May, Kalshi raised $1 billion at a $22 billion valuation, becoming the top-ranked prediction market platform by revenue, followed by Polymarket. Polymarket was last valued at $20 billion during its previous funding round. Previously, in August, Intercontinental Exchange, the parent company of the New York Stock Exchange, invested $600 million in Polymarket at a $15 billion valuation.
Kalshi's annualized revenue increased to $4 billion in July, primarily driven by bets on the 2026 World Cup. During the same period, Polymarket's revenue was only $1.1 billion. Sequoia Capital recently stated that Kalshi "now holds 95% of the U.S. prediction market share."
The majority of Kalshi’s revenue comes from sports contracts, accounting for over 80% of trading volume. On Wednesday, Kalshi announced that Jeff Bandman, the lawyer who helped the company obtain its CFTC-regulated exchange license in 2020, will return as CEO of Kalshi Prime. Kalshi Prime serves clients of Kalshi’s margin perpetual futures business.
Sequoia, Wellington, and Kalshi did not immediately respond to CoinDesk's request for comment.