Prediction market operator Kalshi is in talks to raise new capital at a valuation of about $40 billion, nearly double its previous $22 billion valuation, according to a Financial Times report. The deal could close as soon as the third quarter of this year. If successful, it would widen Kalshi's lead over rival Polymarket, which has been seeking funding at a $15 billion valuation. Kalshi, a federally regulated U.S. exchange with backing from major investors like Coatue Management, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley, is also considering an initial public offering, though CEO Tarek Mansour said the IPO would not occur before 2027. The fundraising comes amid intensifying competition in the prediction markets sector, with Kalshi's regulated status attracting mainstream and institutional investors, while Polymarket's blockchain-based platform appeals to crypto traders.

Key facts

• Kalshi seeks $40B valuation, nearly double previous $22B round.
• Deal could close in Q3, widening lead over Polymarket ($15B).
• Kalshi is a federally regulated U.S. exchange backed by major investors.
• CEO says IPO will not occur before 2027.
• Rival Polymarket uses blockchain, popular with crypto traders.

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