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Sequoia and Wellington Discuss $750 Million for Kalshi

Kalshi wants to raise a new round with Sequoia and Wellington after rapid growth and a higher valuation. At the same time, the CFTC-regulated prediction market is under scrutiny in the U.S. and Spain.

By Mike Hesp
• 2 min read
Sequoia and Wellington Discuss $750 Million for Kalshi

Key Takeaways

  • Kalshi is in advanced talks with Sequoia Capital and Wellington Management about a $750 million funding round at a $40 billion valuation.
  • The company already raised $1 billion in May, saw annualized revenue rise to $4 billion in July, and says it has 95% of the U.S. prediction market.
  • Kalshi continues to compete with Polymarket, while regulation in the U.S. and Europe plays an important role in its further growth.

Kalshi is in advanced talks with Sequoia Capital and Wellington Management about a new $750 million (€650 million) funding round, at a $40 billion (€34.7 billion) valuation. That would push the U.S. prediction market’s valuation much higher again in a short time, while the company also keeps building on its lead over rival Polymarket.

New Round in Sight

The Information reported that Sequoia and Wellington are considering leading the round. According to the sources, the size could even end up higher than $750 million (€650 million). Sequoia is already an investor in Kalshi and also has a board member on the company’s supervisory board.

For Wellington, this would be its first investment in Kalshi. The Boston-based asset manager oversees $1.3 trillion (€1.1 trillion) in client assets and is known for often stepping in when companies are moving toward an IPO. Kalshi itself is thinking about an IPO in 2027, CEO Tarek Mansour said in June.

Growth and Competition

Kalshi raised another $1 billion (€0.9 billion) in May at a $22 billion (€19.1 billion) valuation. Since then, revenue has kept climbing: in July, annualized revenue reached $4 billion (€3.5 billion), mainly thanks to bets around the 2026 World Cup. According to Sequoia, Kalshi now claims 95% of the U.S. prediction market.

That position is also visible in its competition with Polymarket. The platform was previously mentioned in connection with a funding round at a $20 billion (€17.3 billion) valuation, after a $600 million (€520 million) investment from Intercontinental Exchange, the owner of the New York Stock Exchange, at a $15 billion (€13 billion) valuation in August. Polymarket also recently changed its settlement rules after concerns about possible manipulation in short bitcoin markets.

Regulation Remains Decisive

Kalshi was approved by the CFTC in 2020 as the first federally regulated prediction market in the U.S. That puts the platform under a framework similar to major futures exchanges, which sets it apart from traditional betting platforms. At the same time, that regulated status is also a major part of the story behind its growth, but it remains a topic of debate in several jurisdictions.

In May 2026, Spain’s Ministry of Consumer Affairs started proceedings against Kalshi and Polymarket for not having the required gambling license, after which their websites were blocked. For European crypto and market watchers, that shows that the line between prediction markets, trading, and gambling is still being closely enforced legally.

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