Kalshi Eyes $40 Billion Valuation in New $1 Billion Funding Round

Prediction market exchange Kalshi is reportedly in advanced negotiations to raise approximately $1 billion, potentially pushing its valuation to $40 billion, nearly double its May valuation. Investors including Sequoia Capital and Wellington Management are reportedly in talks to lead the round. While research firm Sacra estimates Kalshi's annualized revenue at $3.5 billion as of June, a $40 billion valuation would imply a revenue multiple significantly higher than that of traditional sportsbook operators like DraftKings. The company aims to expand into a multi-asset trading platform, positioning itself against major derivatives exchanges like CME Group, despite increasing regulatory scrutiny from U.S. lawmakers regarding investor protection.