Kalshi Hits $40B Valuation Talks Because Apparently Crystal Balls Are a Hot Commodity Now 🔮

Prediction market platform Kalshi is in advanced discussions to raise approximately $1 billion in a new funding round at a $40 billion valuation, according to people familiar with the matter cited by Reuters. Existing investor Sequoia Capital and Wellington Management are in talks to lead the round, which could also include Tiger Global Management and Dragoneer Investment Group.

The talks come after Kalshi closed a $1 billion Series F round in May at a $22 billion valuation, which had already doubled its valuation from the previous round in December. Reports that Kalshi was seeking funding at a $40 billion valuation first surfaced in June, with the Financial Times reporting on June 24 that the company was in discussions and could close the round as soon as the third quarter of this year.

Cointelegraph reached out to Kalshi, Sequoia Capital, Wellington Management, Tiger Global Management and Dragoneer Investment Group for comment but did not receive an immediate response.

The funding discussions arrive as Kalshi navigates ongoing legal challenges in the prediction market space. A federal appeals court ruled against the company in a recent case, potentially setting up further review in the Supreme Court, according to prior Cointelegraph reporting. The platform, which allows users to trade on the outcomes of real-world events, has continued to attract investor interest amid the regulatory uncertainty surrounding its core business model.