KalshiECO
Kalshi nears roughly $1 billion raise at about $40 billion valuation ahead of possible IPO
The CFTC-regulated prediction market is wrapping up what is expected to be its final private round before a public listing that could come as early as 2027
Kalshi is closing in on another major funding round. The New York-based prediction market is nearing completion of a raise of approximately $1 billion that would value the company at around $40 billion.
This round is expected to be the last private financing before a possible IPO, which could happen as early as 2027.
The details of the raise
The numbers show how quickly Kalshi’s valuation has climbed. In December 2025, the company was valued at $11 billion. By May 2026, a Series F round that raised $1 billion lifted that figure to $22 billion. The new round would take it to roughly $40 billion.
The investor list is notable. Sequoia Capital and Wellington Management are among the key backers in this round. Talks are also reportedly underway with Tiger Global and Dragoneer Investment Group.
Why investors keep writing checks
Kalshi’s trading activity is the main reason for the rising valuation. Trading volumes grew from $52 billion to $178 billion over six months.
Sports-related contracts make up around 65-70% of Kalshi’s trading volume. Kalshi lets users trade on game outcomes in a market format instead of placing a traditional sportsbook bet.
Kalshi reportedly runs a gross margin of approximately 90%, and its revenue run-rate passed $2 billion in mid-2026.
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CEO Tarek Mansour has indicated that a listing is under consideration. In June 2026, however, he ruled out going public this year.
How Kalshi got here
Kalshi operates as a regulated contract market overseen by the Commodity Futures Trading Commission (CFTC). It offers event-based contracts on a wide range of outcomes, from economic indicators to sporting events.
An event contract works like a simple yes-or-no question with a price attached. If you think the answer will be yes, you buy the contract. If you’re right, it pays out, and the trading price reflects the crowd’s estimate of how likely that outcome is.
Prediction markets have long been viewed with suspicion and have often been lumped in with gambling. Kalshi’s federal regulatory status has been central to its pitch, because it lets the company present itself as a financial exchange and not a betting operation. Debate continues over how prediction markets should be regulated, especially around sports contracts.
What this means
For investors, the key issue is concentration. With sports accounting for around 65-70% of trading volume, a large share of Kalshi’s valuation depends on regulators continuing to accept sports event contracts.
A $40 billion valuation assumes that framework holds. Any S-1 filing ahead of an IPO would need to address that dependence in detail.
Wellington Management is a large institutional asset manager, and its participation suggests interest in Kalshi as a potential public company and not just a fast-growing startup.