Kalshi has completed a $1 billion funding round that values the prediction market exchange at $40 billion, the company announced on Thursday.
That valuation comes after it completed its previous funding round in May, where it was valued at $22 billion. The latest round was co-led by Sequoia Capital and Wellington Management.
Since the previous funding round, the company has seen continued growth in its prediction markets. That has been driven by events like the 2026 FIFA World Cup, the NFL season — both leading to explosive growth of combo contracts, similar to parlays on sportsbooks — and increased trading on elections markets ahead of the U.S. midterms.
At the same time, Kalshi has also faced legal headwinds over its sports offerings in the period too. Two U.S. appeals courts — in August and then September — ruled that states have the power to regulate sports-related event contracts, while Kalshi and other prediction market platforms believe the federal government has the right to do so. A Supreme Court case will likely solve the dispute, as a third appeals court has ruled in favor of the latter argument.
Kalshi also announced in late May its first non-prediction market offering, perpetual futures, being the first exchange to bring the popular crypto trade to the U.S.
In a blog post announcing the funding round, Kalshi said prediction markets were just the start as it seeks to build a broader financial exchange. It wants to use the new funds to develop leveraged event contracts, perpetual futures tied to individual stocks and markets to trade on the price of compute.
The company also said it will also use the funds to continue investing in its institutional business. Kalshi said in September it worked with 500 institutional entities, and that excluding market makers those represented 25% of the platform’s total trading volume.
Kalshi has experienced massive growth in the private markets, as just in October 2025 the company was valued at only $5 billion. In an appearance on CNBC’s “Squawk Box” in June, CEO Tarek Mansour said the company was considering a move to the public markets, though it wouldn’t come until 2027.
“A company of our financial profile with the rate of growth that we’re seeing, that sort of conversation has to happen,” he said.
Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.
