Kalshi in talks to raise at $40 billion valuation, nearly double May mark
Kalshi is in talks to raise fresh capital at a roughly $40 billion valuation, according to the Financial Times. The target nearly doubles the $22 billion valuation the prediction market platform reached in May, when it closed a $1 billion funding round. The surge reflects rapid growth for the regulated event-contract venue, which carried a $5 billion valuation as of last October. The talks also come as Kalshi pursues a planned public debut, with IPO discussions progressing alongside the private fundraise. The valuation leap underscores intensifying investor interest in CFTC-registered prediction markets, even as the sector faces an escalating federal-state regulatory fight over event contracts.
Kalshi's $40 billion valuation target pressures Polymarket to match its fundraising pace or surrender the institutional capital that feeds platform liquidity. A widening valuation gap would let Kalshi outspend rivals on product and market-maker incentives just as both venues court the same DRW, Wintermute, and IMC desks.