Kalshi, the federally regulated U.S. prediction market exchange, is reportedly in talks to raise a funding round that would value the company at approximately $40 billion, nearly double its $22 billion valuation from its previous round, according to the Financial Times. A deal could close as soon as Q3 2026, though CNBC reported that sources close to the company say Kalshi is not actively raising at this time.
The valuation jump reflects intensifying competition in prediction markets, where Kalshi and Polymarket have emerged as the sector’s dominant platforms. Polymarket, which operates on blockchain infrastructure and cryptocurrency-based settlement, has targeted a $15 billion valuation, according to reported figures.
Kalshi’s previous funding round drew backing from Coatue Management, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley. The company did not name the specific investors participating in the new round.
Tarek Mansour, Kalshi’s chief executive, acknowledged the company is considering an eventual initial public offering. “A company of our financial profile with the rate of growth that we’re seeing, that sort of conversation has to happen,” Mansour said. “People start asking that question. And we’re basically thinking about it, but obviously, we don’t have an answer yet.” The earliest date for an IPO would be 2027, according to Mansour.
Kalshi operates under federal regulation as a U.S. exchange, distinguishing it from Polymarket’s decentralized model. Both platforms have gained traction among traders, with Polymarket becoming particularly visible during recent election cycles.
The funding environment for prediction markets reflects broader institutional appetite for the sector. Kalshi did not disclose the specific amount it is seeking to raise in the new round or provide details on revenue, profitability, or user metrics.
The two platforms represent different regulatory approaches to prediction markets. Kalshi’s federally regulated structure contrasts with Polymarket’s reliance on blockchain infrastructure, offering traders different operational frameworks and settlement mechanisms.
IPO Timeline Remains Uncertain
While Mansour indicated that IPO discussions are underway, he pointed to 2027 as the earliest possible date and stressed that no firm decision has been made. The company’s focus remains on closing its current funding round and scaling operations in the U.S. prediction markets sector.
