Kalshi raises $1 billion at a $40 billion valuation

Prediction market platform Kalshi has raised $1 billion in a Series G round at a valuation of $40 billion. Sequoia Capital and Wellington Management co-led the round.

Baillie Gifford, Morgan Stanley Investment Management, Coatue Management and Andreessen Horowitz also took part. The US-based company said it will use the new capital to fund product development for both retail and institutional users.

A rapid jump in valuation

The deal follows another $1 billion raise last May, when Kalshi was valued at $22 billion. In other words, the company's valuation has climbed from $22 billion to $40 billion in roughly five months. Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara.

How the platform works

Kalshi lets users trade on the outcomes of future events. Contracts cover topics such as election results, sporting events, the economy and other developments in the news. A user can, for example, buy a contract on a particular candidate winning an election or a team winning a match.

The value of each contract moves with the market's expectations about how likely the outcome is, so prices effectively reflect collective forecasts. Kalshi runs these trades on a regulated exchange infrastructure.

The company says it is building products not only for individual traders but also for institutional customers. That is the area the fresh funding is meant to accelerate, and it signals that Kalshi sees demand for event-based contracts beyond retail users.