Kalshi in talks to raise $750M at $40B valuation with Sequoia, Wellington
Kalshi is in talks to raise $750 million at a $40 billion valuation, according to reports. Sequoia Capital and Wellington Management are eyeing the round. The funding would nearly double the prediction market platform's prior $22 billion valuation from its May 2026 Series F led by Coatue. Kalshi has reached $4 billion in revenue. The talks come as Robinhood partners with Kalshi to offer event contracts to its user base.
The $40 billion target forces Kalshi to justify a valuation jump before it proves the Robinhood partnership can sustain volume at scale. Competitor Polymarket is simultaneously chasing its own $20 billion-plus round, so both platforms are now pricing in growth that assumes no federal ban on sports event contracts and no further state preemption losses. For Kalshi specifically, the near-doubling of valuation in three months puts pressure to show the Apex API rollout and Robinhood distribution are converting to locked-in revenue share, not just borrowed traffic.
Sequoia's re-up signals confidence, but Wellington's participation suggests institutional capital now treats prediction markets as a stand-alone asset class needing allocation, not a crypto tangent. The round size and speed also raise the bar for DraftKings, whose DKeX build-out must prove vertical integration beats Kalshi's partnership model. First close matters: the platform that finalizes first defines the valuation multiple others must match or undercut.