Kalshi in advanced talks with Sequoia and Wellington for $750 million round at $40 billion valuation

Prediction market platform Kalshi is in advanced talks with Sequoia Capital and Wellington Management to raise at least $750 million at a $40 billion valuation, nearly doubling its valuation from May 2026. The funding round comes as Kalshi eyes a 2027 IPO, supported by $4 billion in annualized revenue driven by sports contracts. However, the platform faces new legal hurdles as Baltimore Mayor Brandon Scott filed a lawsuit alleging Kalshi's sports contracts constitute unlicensed sports betting.

Kalshi funding round valuation

• ▪The proposed funding round would value Kalshi at $40 billion, nearly doubling its $22 billion valuation from a $1 billion funding round closed in May 2026.
• ▪Kalshi's valuation has risen from $5 billion in September 2025 to $11 billion in November 2025, $22 billion in May 2026, and a proposed $40 billion in August 2026.
• ▪Prediction market platform Kalshi is in advanced discussions with Sequoia Capital and Wellington Management to raise a funding round of at least $750 million.

Sequoia Wellington investor participation

• ▪Wellington Management, which manages $1.3 trillion in client assets, is in talks to co-lead the round, marking its first investment in Kalshi.
• ▪Sequoia Capital, an existing investor with an executive on Kalshi's board of directors, is considering leading the proposed $750 million investment round to deepen its stake.

Sports betting revenue concentration

• ▪Sports contracts contribute to over 80% of Kalshi's trading volume, and Sequoia Capital recently stated that Kalshi claims a 95% share of the U.S. prediction market by revenue.
• ▪Kalshi generated approximately $4 billion in annualized revenue in July 2026, driven largely by 2026 World Cup betting, compared to Polymarket's $1.1 billion for the same period.

Baltimore unlicensed betting lawsuit

• ▪Baltimore Mayor Brandon Scott and the city council filed consumer protection lawsuits on August 13, 2026, against Kalshi and Polymarket, alleging their sports contracts constitute unlicensed sports betting under Maryland law.
• ▪The Baltimore lawsuit also names distribution partners Coinbase, Robinhood, and Webull, alleging that "combos" offered on Kalshi and Robinhood function as sportsbook parlays.
• ▪Kalshi maintains that its prediction markets fall under the exclusive regulatory oversight of the Commodity Futures Trading Commission.

Kalshi IPO timeline plans

• ▪Wellington Management has a history of making private investments in late-stage companies leading up to their initial public offerings.
• ▪Kalshi is considering a potential initial public offering in 2027, according to statements made by CEO Tarek Mansour in June 2026.

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