Kalshi nears roughly $1 billion raise at about $40 billion valuation ahead of possible IPO

Kalshi is closing in on another major funding round. The New York-based prediction market is nearing completion of a raise of approximately $1 billion that would value the company at around $40 billion. This round is expected to be the last private financing before a possible IPO, which could happen as early as 2027. The details of the raise The numbers show how quickly Kalshi’s valuation has climbed. In December 2025, the company was valued at $11 billion. By May 2026, a Series F round that raised $1 billion lifted that figure to $22 billion. The new round would take it to roughly $40 billion. The investor list is notable. Sequoia Capital and Wellington Management are among the key backers in this round. Talks are also reportedly underway with Tiger Global and Dragoneer Investment Group. Why investors keep writing checks Kalshi’s trading activity is the main reason for the rising valuation. Trading volumes grew from $52 billion to $178 billion over six months. Sports-related contracts make up around 65-70% of Kalshi’s trading volume. Kalshi lets users trade on game outcomes in a market format instead of placing a traditional sportsbook bet. Kalshi reportedly runs a gross margin of...