Kalshi, the New York-based prediction-market startup, has raised $1 billion in a new funding round, valuing the company at $40 billion as it seeks to expand beyond event-based contracts and compete with traditional financial exchanges. The funding round was co-led by Sequoia and Wellington, with Tiger Global Management and Dragoneer Investment Group also participating. The latest valuation marks an increase of nearly 82% from the $22 billion valuation achieved in a $1 billion funding round led by Coatue just over five months ago.
The company is expanding its business beyond sports and election-related prediction markets to build a multi-asset trading platform, placing it in more direct competition with established players such as CME Group and Intercontinental Exchange, the parent company of the New York Stock Exchange. In 2026, Kalshi entered the perpetual futures market following regulatory approval from the Commodity Futures Trading Commission, initially offering cryptocurrency-based contracts before expanding into equity indexes and metals. These derivative products allow traders to maintain positions without an expiry date but can involve significant risks due to leverage.
Kalshi’s expansion comes amid growing scrutiny of prediction-market platforms, which critics argue resemble gambling and may encourage addictive behaviour. Earlier this week, Utah’s attorney general filed criminal charges against the company and two senior executives, accusing them of illegally promoting online gambling. Despite regulatory challenges, prediction markets have gained prominence since the last US presidential election. According to Dune Analytics data, Kalshi has overtaken rival Polymarket in market share over the past year, while Polymarket has faced delays in launching its US platform and a Commodity Futures Trading Commission investigation.
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