Prediction market platform Kalshi is in advanced talks to raise approximately $1 billion at a $40 billion valuation, people familiar with the matter told Reuters.

Sequoia Capital, an existing investor, and Wellington Management are in talks to lead the round. Tiger Global Management and Dragoneer Investment Group may also participate, according to the Reuters report, which attributed the details to unnamed sources.

The contemplated valuation would mark a near-doubling of Kalshi's worth in roughly four months. In May, the New York-based exchange closed a $1 billion Series F round at a $22 billion valuation — itself a doubling from the company's December mark.

Talks of a round at the $40 billion level first surfaced in June. The Financial Times reported on June 24 that Kalshi was negotiating a raise at that valuation and could close it as early as the third quarter of this year.

Cointelegraph contacted Kalshi, Sequoia Capital, Wellington Management, Tiger Global Management and Dragoneer Investment Group for comment and had not received an immediate response at publication time. The round's terms remain unfinalized, and valuations in advanced negotiations can shift before close.

Operational backdrop

The fundraising momentum tracks a period of aggressive expansion for Kalshi, which operates a regulated exchange for event contracts under the oversight of the U.S. Commodity Futures Trading Commission. The company has broadened its listed markets beyond election outcomes into sports, crypto price events and pop-culture contracts, a catalog expansion that has drawn both user growth and regulatory scrutiny.

That scrutiny has produced litigation. Kalshi recently lost an appeal in a case that sets up a potential Supreme Court review, a legal trajectory that could define the boundary between CFTC-regulated event contracts and state gambling law. A funding round at $40 billion would arrive while that question remains unresolved, giving new investors exposure to a business whose regulatory perimeter is still being contested in court.

A $1 billion infusion would also give Kalshi substantial dry powder for the operational demands of a fast-scaling exchange: margin and settlement infrastructure, compliance staffing, market-making partnerships and customer acquisition in a prediction market sector that now includes well-funded rivals such as Polymarket, which raised its own capital this year after a $2 billion raise earlier in 2025.

What comes next

If the talks conclude on the reported timeline, the round could close before the end of the third quarter, delivering one of the largest private valuations in the crypto-adjacent fintech sector and testing whether private-market investors will sustain the valuation curve Kalshi has ridden since December.