Community Trust ScoreVerified
Kalshi wants $750 million. Fast.
The prediction market platform is deep in talks with Sequoia Capital and Wellington Management to close a fresh funding round at a $40 billion valuation, according to people familiar with the discussions. Neither Kalshi, Sequoia, nor Wellington has commented publicly, so some details are still murky — but the numbers involved are hard to ignore.
Sequoia is already in the building. The firm, which manages $56 billion in assets and holds a board seat at Kalshi, would be doubling down on a bet it’s already made. Wellington is a different story. The Boston-based asset manager oversees $1.3 trillion in client assets and has never put money into Kalshi before. If the round closes, it would be Wellington’s first stake in the company — and that’s kind of a big deal, given Wellington’s reputation for waiting until companies are close to going public before writing checks.
From $22 Billion to $40 Billion in Months
The valuation jump is steep. Kalshi raised $1 billion back in May at a $22 billion valuation. Now it’s pushing for $40 billion — nearly double — just a few months later. That’s a fast climb even by prediction market standards, and it basically tells you how hot this sector has gotten.
Revenue is the main argument. Kalshi hit $4 billion in annualized revenue as of July, driven hard by 2026 World Cup betting. Sports contracts aren’t just a side business here — they’re pretty much the whole engine, accounting for over 80% of transaction volume. That focus has worked. Kalshi holds roughly 95% of the U.S. prediction market by some measures, a dominance that’s hard to argue with when you’re looking at those revenue figures.
Compare that to Polymarket, the main competitor. Polymarket posted $1.1 billion in revenue over the same period — real money, but nowhere near Kalshi’s pace. Polymarket is also out raising funds right now, seeking a $20 billion valuation. And the Intercontinental Exchange, owner of the New York Stock Exchange, recently dropped $600 million into Polymarket, which shows just how seriously traditional finance is taking this space. But Kalshi is still out front on revenue by a wide margin.
Jeff Bandman Returns, IPO Looms
Kalshi made a notable internal move alongside the funding news. Jeff Bandman is back. The company reinstated him as CEO of Kalshi Prime, the unit serving margin perpetual futures customers. Bandman was instrumental in getting Kalshi its CFTC exchange license — the regulatory approval that let the company operate legally in the U.S. and, honestly, that set the foundation for everything that’s followed. Bringing him back to lead Kalshi Prime seems like a clear signal that the company wants to push harder into that segment.
CEO Tarek Mansour has pointed toward an IPO in 2027. Wellington’s potential involvement fits that timeline almost too neatly. The firm is known for coming in late in a private company’s life cycle, right before a public offering, which makes this round look less like a growth-stage bet and more like pre-IPO positioning.
No official terms have been confirmed. Kalshi, Sequoia, and Wellington all stayed quiet. So the final shape of the deal — structure, exact stakes, any conditions — isn’t clear yet.
What’s Driving the Frenzy
Prediction markets have moved fast from niche to mainstream. Sports betting was the unlock. Once Kalshi leaned into sports contracts, volume exploded, and that 80%-plus share of transaction activity from sports alone tells you the platform found something that works with regular users, not just political junkies or crypto traders.
The CFTC license matters here too. Kalshi got that approval in 2020, and it’s been a real moat. Competitors operating without that kind of regulatory footing face a harder path in the U.S. market. Bandman was central to winning that license, which is probably part of why he’s back.
And the broader investor appetite is real. Traditional finance giants — Wellington, the Intercontinental Exchange — are putting serious money into prediction markets. That’s not a fluke. It’s a read on where retail trading behavior is heading, and big asset managers don’t usually move this fast without conviction.
Kalshi’s annualized revenue of $4 billion as of July, fueled mostly by World Cup contracts, is the number that probably matters most to any investor sitting across the table right now.
Frequently Asked Questions
Who is leading Kalshi’s $750 million funding round?
Sequoia Capital and Wellington Management are reportedly leading the round, which seeks a $40 billion valuation for Kalshi.
What is Kalshi’s annual revenue as of mid-2026?
Kalshi reached $4 billion in annualized revenue as of July 2026, with sports contracts making up over 80% of its transaction volume.
Who is Jeff Bandman and why did Kalshi bring him back?
Jeff Bandman was key in securing Kalshi’s CFTC exchange license and has been reinstated as CEO of Kalshi Prime, the unit focused on margin perpetual futures customers.
