CoinDesk
Kalshi is in advanced talks with Sequoia Capital and Wellington Management to raise at least $750 million at a $40 billion valuation, according to people familiar with the matter. The round would nearly double Kalshi's $22 billion mark from a $1 billion raise just four months ago in May, and would land alongside annualized revenue of roughly $4 billion, with sports contracts driving more than 80% of trading volume and Kalshi claiming 95% of the U.S. prediction market by revenue.
Sequoia, which already holds a board seat at Kalshi and runs $56 billion in assets under management, would deepen its existing stake. Wellington Management, the Boston-based financial firm overseeing $1.3 trillion in client assets, would be entering Kalshi's cap table for the first time. The size of the round could exceed $750 million, The Information reported, citing the same sources.
Why it matters
Wellington's debut on the cap table is the headline. A firm with $1.3 trillion in client AUM that historically invests in private companies on the run-up to their IPOs is the kind of institutional anchor a category needs to graduate from crypto-adjacent curiosity to a fully-fledged financial asset class. CEO Tarek Mansour said in June that Kalshi is weighing a 2027 IPO, which lines up cleanly with Wellington's typical late-stage pattern.
The competitive picture is stark. Kalshi's $4 billion annualized revenue in July is roughly 3.6x Polymarket's $1.1 billion for the same period. Polymarket was last reported raising at $20 billion following a $600 million investment from Intercontinental Exchange, the owner of the New York Stock Exchange, at a $15 billion valuation in August. The two venues are running different plays, but Kalshi's lead in regulated US-dollar-denominated sports volume has, for now, drawn the heavier institutional bid.
Market impact
Kalshi Prime, the platform's margin perpetual futures arm, just named Jeff Bandman, the lawyer who helped Kalshi win its CFTC-regulated exchange license in 2020, as its new CEO.
Frequently asked questions
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Why is Wellington's first Kalshi investment significant?
Wellington has $1.3 trillion in client AUM and typically invests in private companies on the run-up to their IPOs. The Boston-based firm's entry reframes prediction markets from a crypto-adjacent curiosity to a recognized institutional asset class.
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How much revenue does Kalshi generate?
Kalshi posted roughly $4 billion in annualized revenue as of July, with sports contracts driving more than 80% of trading volume, primarily on 2026 World Cup betting.
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When is Kalshi considering an IPO?
CEO Tarek Mansour said in June that Kalshi is weighing an initial public offering in 2027, a timeline that lines up cleanly with Wellington's typical late-stage IPO playbook.
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How does Kalshi compare to Polymarket?
Kalshi leads with roughly $4 billion in annualized revenue versus Polymarket's $1.1 billion for the same period, and claims 95% of the U.S. prediction market by revenue.
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What is Kalshi Prime?
Kalshi Prime is the platform's margin perpetual futures business. The exchange just named Jeff Bandman, the lawyer who helped Kalshi secure its CFTC-regulated exchange license in 2020, as its new CEO.
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