Kalshi is considering a funding round of about $1 billion at a valuation near $40 billion, according to reports, as the prediction-market operator expands beyond event contracts.
Sequoia Capital and Wellington Management are in talks to participate, while Tiger Global Management and Dragoneer Investment Group are also considering joining. The discussions remain ongoing, and the deal size and valuation could change.
Kalshi last raised $1 billion in May at a $22 billion valuation. A new round at $40 billion would nearly double the company’s valuation within months.
Sequoia could lead the financing, while partner Alfred Lin serves on Kalshi’s board. The terms remain under negotiation, with the deal expected to develop in the coming weeks.
Polymarket is also exploring a funding round of about $1 billion as prediction markets attract increased investor interest.
Kalshi is seeking to expand beyond event contracts into financial and economic markets, bringing it into greater competition with established derivatives exchanges such as CME Group and Intercontinental Exchange.
Dune data shows Kalshi has increased its market share relative to Polymarket over the past year.
The expansion comes as lawmakers examine prediction-market regulation and investor protections. Kalshi operates under Commodity Futures Trading Commission oversight.
Co-founder Tarek Mansour has also discussed a potential public listing as the company expands its business.
