Kalshi, Polymarket Reportedly Seek $20 Billion Valuations in New Funding Rounds

Kalshi operates a prediction market regulated by the US Commodity Futures Trading Commission, allowing customers to trade event contracts tied to outcomes in politics, economics and sports. The company’s rapidly expanding fundraising ambitions underscore investor demand for prediction markets as a new financial-trading category, while placing greater attention on its growth, regulatory standing and ability to justify a sharply higher valuation.

Kalshi has raised $1.12 billion through a private equity offering launched in April, according to its latest filing with the US Securities and Exchange Commission. The company has sold roughly three-quarters of a planned $1.5 billion offering to 71 investors. Separate reports earlier this month said Kalshi was seeking another $750 million at a valuation of as much as $40 billion.

Kalshi operates a federally regulated U.S. prediction market where users trade event contracts tied to political, economic and other outcomes. Rapid adoption has given the company about 95% of the U.S. prediction-market business, according to the reports. Its dominance and accelerating revenue have raised its profile among major institutional investors while sharpening scrutiny of regulation, the durability of trading activity and its prospects as a future public company.

Kalshi is in talks with Sequoia Capital and Wellington Management to raise at least $750 million at a valuation of about $40 billion. The proposed price would represent an increase of roughly 82% from its $22 billion valuation three months earlier. The company has reached $4 billion in annualized revenue and is actively preparing for a potential initial public offering in 2027, though the financing discussions have not yet been reported as finalized.

Kalshi is a financial prediction-market platform that allows users to trade contracts based on the outcomes of political, economic and other events. Its main rival is Polymarket. Kalshi's valuation and fundraising capacity reflect the prediction market's rapid expansion and bear on the two companies' race for users, trading volume and industry dominance.

Kalshi is in talks to raise a new funding round at a valuation of up to $40 billion, nearly double its valuation in the previous round. It plans to use the funding to widen its lead over Polymarket. Chief Executive Tarek Mansour said the company remained financially sound and was sustaining strong growth, and was considering pursuing an IPO after 2027.

Kalshi is a prediction market regulated by the U.S. Commodity Futures Trading Commission (CFTC), allowing users to trade contracts on the outcomes of political, economic and sporting events. Its regulated status has helped it tap demand for sports betting, while both revenue and valuation have climbed. Its potential listing has also become an important gauge of prediction markets' move into mainstream finance.

As of July 2026, Kalshi's annualized revenue had surpassed $2 billion, about three times its level at the end of 2025, driven mainly by trading tied to sporting events including the NBA and World Cup. The company's valuation also doubled within six months to $22 billion. It has reportedly begun early, informal IPO talks with investment banks but has yet to announce a listing timetable.