Kalshi Targets $40B Valuation in $750M Fundraise With Sequoia and Wellington

Woofun AI reports that prediction market leader Kalshi has entered advanced discussions with Sequoia Capital and Wellington Management to secure a $750 million funding round, targeting a $40 billion valuation. This capital raise represents a significant step up from previous rounds, with sources indicating the final amount could exceed the initial $750 million figure.

Sequoia Capital, a Silicon Valley firm managing $56 billion in assets under management, already holds an executive seat on Kalshi's board of directors and is considering leading the round. Wellington Management, a Boston-based financial giant overseeing $1.3 trillion in client assets under management, would be making its first investment in the company.

Woofun AI data shows that Wellington typically makes private investments in companies leading up to their initial public offerings (IPO), aligning with Kalshi CEO Tarek Mansour's statement in June that the company is considering an IPO in 2027.

Kalshi's financial trajectory has accelerated sharply, having raised $1 billion in May at a $22 billion valuation. By July, annualized revenue climbed to $4 billion, largely fueled by 2026 World Cup betting activity, compared to rival Polymarket's $1.1 billion for the same period. Polymarket, which secured a $600 million investment from Intercontinental Exchange—the owner of the New York Stock Exchange—at a $15 billion valuation in August, is reportedly seeking funding at a $20 billion valuation. Sequoia Capital recently noted that Kalshi now claims 95% U.S. market share in prediction markets, with sports contracts contributing over 80% of its volume.

In a strategic leadership shift, Kalshi announced Wednesday that Jeff Bandman, the lawyer who helped the company secure a CFTC-regulated exchange license in 2020, is returning as CEO of Kalshi Prime. This unit serves customers of Kalshi's margin perpetual futures business, reinforcing the firm's regulatory infrastructure. Neither Sequoia, Wellington, nor Kalshi immediately responded to a request for confirmation.