Kalshi targets $40 billion valuation in fresh $1 billion funding talks

Kalshi is in advanced discussions to raise about $1 billion in fresh funding, potentially valuing the prediction market exchange at about $40 billion. Reuters reported Tuesday that Tiger Global Management and Dragoneer Investment Group are among investors discussing participation. The deal could close within weeks, according to people familiar with the talks.

The proposed valuation would mark a sharp increase from Kalshi’s $22 billion valuation in a $1 billion funding round announced in May. Sequoia Capital and Wellington Management are reportedly discussing leading the new round. Meanwhile, Kalshi is expanding beyond event contracts and seeking to compete more directly with established financial exchanges.

Kalshi has also gained ground against rival Polymarket over the past year. Both companies are pursuing large funding rounds as prediction markets expand into financial and corporate events. However, regulators and lawmakers are examining investor protection and oversight as these platforms enter areas traditionally served by regulated financial markets.