Kalshi Seeks $40 Billion Valuation as Prediction Markets Race Heats Up

Kalshi is in advanced discussions to raise fresh capital at a valuation of about $40 billion, according to the reported talks. The potential round could close as soon as the third quarter of this year and would come shortly after the U.S.-based prediction market company raised $1 billion at a $22 billion valuation last month.

The talks matter because they show how quickly prediction markets are moving from niche products into a larger contest with established derivatives and gambling businesses. Kalshi and rivals such as Polymarket have been expanding their customer bases, while their growth is increasingly putting them in the orbit of major financial-market operators such as CME Group.

Kalshi’s valuation has climbed sharply in a short period. Its reported $22 billion valuation last month compared with $11 billion in December 2025 and $5 billion earlier last year, underscoring investor appetite for platforms that let users trade contracts tied to real-world outcomes.

The company’s previous round included well-known investors and financial firms, including Coatue, Sequoia Capital, Andreessen Horowitz and Morgan Stanley. If completed at roughly $40 billion, the new financing would strengthen Kalshi’s position against Polymarket in the increasingly competitive prediction market sector.

Prediction markets remain a sensitive area for regulators and incumbent exchanges because their products can resemble both financial derivatives and wagers on events. For crypto readers, the Kalshi-Polymarket rivalry is especially relevant because prediction markets have become one of the clearest examples of consumer-facing market infrastructure crossing between crypto culture, trading, and regulated finance.