CoinDesk
Kalshi is raising fresh capital at a roughly $40 billion valuation, nearly doubling the $22 billion mark from its prior funding round, according to a Financial Times report citing people familiar with the matter. The federally regulated US prediction market could close the round as soon as the third quarter, a deal that would widen its valuation lead over crypto-native rival Polymarket, which has been seeking funding at $15 billion.
Kalshi's previous round drew a roster of heavyweight backers including Coatue Management, Sequoia Capital, Andreessen Horowitz and Morgan Stanley. CEO Tarek Mansour confirmed Wednesday that an initial public offering is now on the table, telling CNBC the conversation is unavoidable given the company's growth profile, though any listing would not come before 2027.
Why it matters
Kalshi and Polymarket have emerged as the two dominant names in event-contract trading, and the valuation gap between them is the cleanest read on where institutional capital is placing its conviction. Kalshi's federally regulated status has been the wedge that pulled in mainstream and institutional money, while Polymarket's blockchain-based settlement has captured the crypto trader base and a wider cultural footprint during recent election cycles. The roughly 2.7x valuation gap favors the regulated venue by a wide margin, even as competition from new entrants intensifies.
Market impact
A near-doubling in valuation in a single round is a strong signal of demand-side conviction, but it also raises the bar for Kalshi's eventual public debut. Polymarket's $15B target, if it closes, would still represent the largest crypto-native valuation in the prediction-market category, keeping RWA-style event contracts firmly on institutional desks. Watch the Q3 close: the size of the primary-versus-secondary split will tell the market whether the round is fueling growth or just rewarding existing holders.
Frequently asked questions
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What valuation is Kalshi targeting in its new funding round?
Kalshi is seeking to raise at a roughly $40 billion valuation, nearly double the $22 billion mark from its previous round, according to a Financial Times report citing people familiar with the matter.
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When could the new Kalshi funding round close?
The deal could close as soon as the third quarter of this year, per FT, though Kalshi has not publicly confirmed a timeline.
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How does Kalshi's valuation compare to Polymarket's?
Polymarket has been seeking funding at a $15 billion valuation, meaning a successful Kalshi round would leave it valued at roughly 2.7 times its closest rival.
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Has Kalshi discussed going public?
CEO Tarek Mansour said on CNBC that an IPO is now on the table given the company's growth profile, but any listing would not occur before 2027.
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Who invested in Kalshi's previous funding round?
The prior $22 billion round drew Coatue Management, Sequoia Capital, Andreessen Horowitz and Morgan Stanley, among other institutional backers.
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