Author: CoinDesk

Translation: Shenchao TechFlow

Introduction by Shenchao: The leading prediction market Kalshi just raised 1 billion USD at a valuation of 22 billion USD in May, and now aims to secure at least 750 million USD from Sequoia and Wellington at a valuation of 40 billion USD. Annual revenue surged to 4 billion USD, sports contracts contributed 80% of trading volume, and they are eyeing a 2027 IPO; the compliant prediction market is turning into one of the fiercest tracks for capital.

Image: Kalshi co-founder and COO Luana Lopes Lara. Source: Getty Images / Anna Webber

According to insiders, Kalshi is in deep negotiations with Sequoia Capital and Wellington Management, planning to raise at least 750 million USD at a valuation of 40 billion USD.

This round of financing will deepen Sequoia's existing holdings and marks Wellington's first investment in Kalshi. The prediction market platform is considering an initial public offering (IPO) in 2027.

Kalshi raised 1 billion USD at a valuation of 22 billion USD in May this year, currently having an annual revenue of around 4 billion USD, primarily from sports contracts. The company claims to hold a 95% market share of the US prediction market by revenue.

The prediction market giant Kalshi is in advanced discussions with Sequoia Capital and Wellington Management for a new round of 750 million USD funding, with a valuation of 40 billion USD. The information was reported by The Information citing insiders.

Insiders say that existing investor Sequoia and Wellington are considering leading this round, with the funding amount possibly exceeding 750 million USD. Sequoia, based in Silicon Valley, manages 56 billion USD in assets and already has an executive on Kalshi's board.

For Wellington, a financial giant based in Boston managing 13 trillion USD in client assets, this will be its first investment in Kalshi. Wellington had previously invested privately before the company went public. Kalshi CEO Tarek Mansour stated in June this year that the company is considering an IPO in 2027.

Kalshi raised 1 billion USD at a valuation of 22 billion USD in May this year, becoming the top prediction market platform by revenue, closely followed by Polymarket. It was reported that the last valuation Polymarket sought in its fundraising was 20 billion USD. Previously, the parent company of the New York Stock Exchange, Intercontinental Exchange, invested 600 million USD in Polymarket at a valuation of 15 billion USD in August.

Kalshi's annual revenue increased to 4 billion USD in July, mainly driven by bets on the 2026 World Cup. During the same period, Polymarket's revenue was only 1.1 billion USD. Sequoia recently stated that Kalshi "now holds 95% of the market share in the US prediction market."

Most of Kalshi's revenue comes from sports contracts, contributing over 80% of trading volume. Kalshi announced on Wednesday that Jeff Bandman, the lawyer who helped the company obtain its CFTC-regulated exchange license in 2020, will return as CEO of Kalshi Prime. Kalshi Prime serves clients in Kalshi's margin perpetual futures business.

Sequoia, Wellington, and Kalshi did not immediately respond to CoinDesk's request for comment.