Prediction Market Kalshi Seeks $1 Billion Funding at $40 Billion Valuation

Prediction market operator Kalshi is in negotiations to raise $1 billion at a target valuation of $40 billion, with Sequoia Capital and Wellington Management reportedly in talks to lead the round. Tiger Global and Dragoneer Investment Group are also participating in discussions. The deal has not yet been finalized. Kalshi previously raised $300 million at a $5 billion valuation in October 2025 and $1 billion at a $22 billion valuation in May 2026. On September 25, the U.S. Court of Appeals for the Sixth Circuit ruled against Kalshi in a case involving Ohio and Tennessee, allowing those states to regulate its sports contracts under gambling laws, despite Kalshi's argument that its products fall under the jurisdiction of the Commodity Futures Trading Commission.