Kalshi is reportedly wrapping up a funding round that would value the prediction market at around $40 billion, with Sequoia Capital and Wellington Management reported to be in talks to lead, according to Bloomberg.[1] Rival Polymarket is seeking a valuation of more than $20 billion — a proposed post-money figure of about $21 billion has been reported.
A remarkable climb
Kalshi was valued at about $11 billion after a $1 billion raise in November 2025,[3] and at $22 billion after another $1 billion round in May 2026.[2] A $40 billion valuation would nearly double that again in five months — putting the company in the same league as established exchange operators.
Both companies are said to be considering going public, possibly as early as next year. Kalshi's chief executive, Tarek Mansour, has said a listing is being considered but ruled out a 2026 debut. Neither company has filed for an IPO.
Why investors are paying up
- Volume: Kalshi has been handling billions of dollars in contracts a month, driven by sports.
- Elections: the 2026 midterms are a major showcase; Kalshi has said it could see $10 billion in election trades in 2028.
- New products: perpetual contracts, international expansion and partnerships with brokers and sportsbooks.
The risk investors are taking
The valuations come before the legal battle over sports contracts is resolved. Sports make up a large share of trading, and more than a dozen states are fighting them in court. A Supreme Court loss could change the picture dramatically. Read the Kalshi lawsuits explained.
Compare the platforms themselves in our Kalshi review and Polymarket review.
Sources
- Kalshi valuation set to hit $40 billion in pre-IPO funding push — Bloomberg via Yahoo Finance ↩
- Kalshi nears USD 40 bln valuation ahead of IPO — The Paypers ↩
- Kalshi's valuation jumps to $11B after raising $1B round — TechCrunch, 20 November 2025 ↩
