Regulations

Story: Kalshi Chases $40 Billion Valuation as Wellington Eyes First-Ever Stake

By Dan Saada

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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.

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Jeff Bandman Returns, IPO Looms. Kalshi made a notable internal move alongside the funding news. Jeff Bandman is back.

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What's Driving the Frenzy. Prediction markets have moved fast from niche to mainstream. Sports betting was the unlock.

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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…

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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.

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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.

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Revenue is the main argument. Kalshi hit $4 billion in annualized revenue as of July, driven hard by 2026 World Cup betting.

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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.

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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…

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Related: CFTC Hits Prediction Markets With Warning Over Deficient Incentive Filings

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CEO Tarek Mansour has pointed toward an IPO in 2027. Wellington's potential involvement fits that timeline almost too neatly.

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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.

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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…

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The CFTC license matters here too. Kalshi got that approval in 2020, and it's been a real moat.

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Read also: Kalshi Feeds Live Order Book Data to DoubleZero Edge Across 37.7 Billion Dollar Prediction Market

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