Author: CoinDesk
Compiled by: TechFlow
TechFlow Insight: Prediction market leader Kalshi, which just raised $10 billion at a $22 billion valuation in May, is now set to secure at least $7.5 billion from Sequoia and Wellington at a $40 billion valuation. With annualized revenue surging to $40 billion, sports contracts contributing 80% of trading volume, and an IPO eyeing 2027, the compliant prediction market is becoming one of the most fiercely contested arenas for capital.
Image: Kalshi co-founder and COO Luana Lopes Lara. Source: Getty Images/Anna Webber
According to sources familiar with the matter, Kalshi is in advanced talks with Sequoia Capital and Wellington Management to raise at least $7.5 billion at a valuation of $40 billion.
This round would deepen Sequoia's existing stake and mark Wellington's first investment in Kalshi. The prediction market platform is considering an initial public offering (IPO) in 2027.
Kalshi raised $10 billion at a $22 billion valuation in May this year and currently has annualized revenue of approximately $40 billion, primarily driven by sports contracts. The company claims to hold a 95% share of the U.S. prediction market by revenue.
Prediction market giant Kalshi is in advanced negotiations with Sequoia Capital and Wellington Management for a new $7.5 billion funding round at a $40 billion valuation. The Information reported this news citing people familiar with the discussions.
According to the sources, Sequoia, an existing investor in Kalshi, and Wellington are considering leading the round, which could exceed $7.5 billion. Silicon Valley-based Sequoia, which manages $56 billion in assets, already has a board seat at Kalshi.
For Boston-based financial giant Wellington, which manages $1.3 trillion in client assets, this would be its first investment in Kalshi. Wellington has previously made private investments in companies before their public listings. Kalshi CEO Tarek Mansour stated in June that the company is considering an IPO in 2027.
Kalshi raised $10 billion at a $22 billion valuation in May this year, making it the top prediction market platform by revenue, followed by Polymarket. Polymarket was reportedly seeking funding at a valuation of $20 billion in its last round. Previously, Intercontinental Exchange, parent company of the New York Stock Exchange, invested $600 million in Polymarket at a $15 billion valuation in August.
Kalshi's annualized revenue increased to $40 billion in July, largely driven by betting 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 a 95% share of the U.S. prediction market."
The majority of Kalshi's revenue comes from sports contracts, accounting for over 80% of trading volume. Kalshi announced on Wednesday that lawyer Jeff Bandman, who helped the company secure its CFTC-regulated exchange license in 2020, is returning as CEO of Kalshi Prime. Kalshi Prime serves clients of Kalshi's margined perpetual futures business.
Sequoia, Wellington, and Kalshi did not immediately respond to CoinDesk's requests for comment.
