Kalshi Raises $1 Billion at a $40 Billion Valuation in Series G Round Co-Led by Sequoia and Wellington

Prediction market operator Kalshi said on 29 October 2026 that it has raised $1 billion in a Series G round co-led by Wellington Management and Sequoia Capital, at a post-money valuation of $40 billion. The New York company's value has risen about 82% since May and roughly twentyfold in 16 months, and the announcement came a day after Utah filed criminal charges against Kalshi and its two co-founders.

Kalshi framed the raise as the start of a broader ambition. Its announcement says the long-term goal is "building the next-generation financial exchange," adding that "prediction markets were our starting point."

Who put money in

Two investors led the round, and ten more were named by the company. Several are repeat backers.

The mix leans toward large public-market and crossover investors such as Wellington, Baillie Gifford and Morgan Stanley's asset management arm, alongside two trading firms, Hudson River Trading and Balyasny. Reuters first reported in September that Kalshi was in advanced talks to raise at this valuation, according to Cointelegraph.

How Kalshi's valuation climbed

Kalshi has now raised $1 billion three times in under 11 months. Each round has roughly doubled its price.

The Series C figures come from trade reporting by DeFi Rate; the later rounds were confirmed by the company to Bloomberg, TechCrunch and Reuters, or in Kalshi's own announcements. The May round, Bloomberg reported, also drew Sequoia, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest.

The numbers Kalshi is selling

The company backed the valuation with a set of operating figures. These are Kalshi's own numbers and have not been independently audited.

The emphasis on non-sports revenue is deliberate. Sports event contracts drive much of Kalshi's activity and almost all of its legal trouble with states, which treat them as unlicensed sports betting. In May, at the Series F, Kalshi reported a total annualized revenue run rate above $1.5 billion, according to Cointelegraph.

Reuters reported that Kalshi has overtaken rival Polymarket in market share over the past year, citing Dune Analytics data, while Polymarket has faced delays to its U.S. launch.

Where the money goes

Kalshi listed five uses for the new capital:

• faster growth in prediction markets and institutional adoption;
• new products, including indices developed with S&P, single-stock perpetual futures and markets tied to computing prices;
• institutional sales, distribution and products for hedge funds, proprietary trading firms and banks;
• international expansion focused on Latin America and Europe;
• continued work with brokerage and payments partners such as Interactive Brokers, Public.com, PayPal and Block.

Perpetual futures, contracts with no expiry date that let traders hold leveraged positions without rolling them over, began with cryptocurrency and later added equity index and metals contracts after approval by the Commodity Futures Trading Commission (CFTC), the federal regulator of futures exchanges, Reuters reported. That puts Kalshi in more direct competition with CME Group and Intercontinental Exchange, the owner of the New York Stock Exchange.

Legal pressure in the background

The raise closed amid the most serious legal challenge Kalshi has faced. On 28 October, Utah Attorney General Derek Brown filed 14 counts against KalshiEX LLC, chief executive Tarek Mansour and chief operating officer Luana Lopes Lara, as detailed in our report on Utah's criminal charges against Kalshi and its founders. The charges are allegations; the company and both founders are presumed innocent, and Kalshi has called the case an overreach. The funding announcement did not mention it.

Utah is one front among many. The same week, Kalshi sued Louisiana officials in federal court to protect its sports contracts, and Ohio told its gaming licensees to cut ties with prediction markets. Earlier disputes include the Maryland case that drew opposition from 27 tribes and a federal suit by California tribes against Kalshi and Robinhood. The CFTC's position on sports contracts has split opinion since its 2025 roundtable, and the agency is now suing states that act against registered exchanges.

IPO talk

Kalshi has not announced a listing. In June, Mansour told CNBC an initial public offering was being considered but would not happen in 2026, saying "we don't have an answer yet," Yogonet reported. Covers reported on 29 October that IPO discussions are now under way; Kalshi has given no timetable.

The next tests are commercial and legal: whether the new products can grow non-sports revenue as fast as promised, and whether the courts let Kalshi keep offering sports contracts in states that call them gambling.

Status reviewed on 30 October 2026. Round size, valuation, investors and operating metrics are from Kalshi's announcement; earlier rounds are from Bloomberg, TechCrunch and DeFi Rate. More business news and North America coverage.