Kalshi, the rapidly growing prediction market startup, is in talks to raise a new funding round at a valuation of approximately $40 billion, according to sources cited by the Financial Times. The round could close as soon as the third quarter, signaling significant investor appetite for the platform that lets users bet on the outcome of events like elections and economic data.
The reported valuation would nearly double the $22 billion price tag from Kalshi's previous raise in May, when it secured $1 billion. The startup has been expanding aggressively, positioning itself as a bridge between traditional derivatives and betting markets, increasingly challenging established players like PredictIt and Polymarket.
Details on the size of the new round remain unclear, as talks are ongoing. The Financial Times notes that sources described the process as early-stage, suggesting terms could shift. Kalshi's rapid valuation growth reflects surging demand for event-based contracts, though regulatory scrutiny of prediction markets persists.
A deal at this valuation would cement Kalshi's status as a dominant force in the sector, potentially attracting more institutional capital. Competitors may face pressure to innovate or consolidate as Kalshi scales its offerings.
Critics warn that prediction markets could be used to manipulate public perception or amplify misinformation, though Kalshi maintains compliance with CFTC oversight.