Kalshi in talks with Sequoia, Wellington for $750 million fund raise at $40 billion valuation

Prediction market firm Kalshi is engaged in advanced talks with venture capital firms Sequoia Capital and Wellington Management for a substantial funding round. This potential investment, valued at $750 million, would value Kalshi at an impressive $40 billion, according to a report by The Information. Sequoia, already a current investor in Kalshi, and Wellington are reportedly considering leading this round, with the possibility of the total amount exceeding the initial $750 million figure.

The Silicon Valley-based Sequoia, managing $56 billion in assets, already has a board seat on Kalshi's board. For Wellington, a Boston-based financial behemoth with $1.3 trillion in client assets under management, this would be their first investment in Kalshi. The CEO of Kalshi, Tarek Mansour, mentioned in June that the company is planning an initial public offering (IPO) in 2027.

In May, Kalshi raised $1 billion at a $22 billion valuation, making it the top prediction market platform by revenue, ahead of Polymarket, which is also seeking funding at $20 billion, following a $600 million investment from the Intercontinental Exchange in August. Kalshi's revenue surged to $4 billion in July, primarily driven by betting on the 2026 World Cup.

Wellington has a history of making private investments before companies go public. Sequoia Capital recently confirmed that Kalshi now holds a 95% U.S. market share in prediction markets, with the majority of their revenue coming from sports contracts. Jeff Bandman, the lawyer who assisted Kalshi in securing a CFTC-regulated exchange license in 2020, is set to return to Kalshi as CEO of Kalshi Prime, the business handling margin perpetual futures.

As of now, Sequoia, Wellington, and Kalshi have not responded to requests for confirmation from CoinDesk.