New York‑based prediction‑market exchange Kalshi is negotiating a fresh capital raise of roughly $1 billion, according to sources familiar with the discussions. The funding round, which could value the firm at about $40 billion, involves both existing backers and new investors, with Tiger Global Management and Dragoneer Investment Group reported as the most prominent prospective participants.
Kalshi, founded in 2018 by MIT alumni Tarek Mansour and Luana Lopes Lara, has already completed a $1 billion raise in May that placed its valuation at $22 billion. The current round is expected to close in the coming weeks, though the exact size of each investor’s commitment has not been disclosed.
Existing investors stay involved
Sequoia Capital, a long‑time supporter, is reportedly leading the latest round alongside Wellington Management. Alfred Lin, a co‑leader at Sequoia, sits on Kalshi’s five‑member board of directors, underscoring the firm’s continued confidence in the platform’s growth trajectory.
Strategic expansion beyond prediction markets
Kalshi is using the capital to broaden its platform beyond its original focus on sports‑betting‑style prediction markets. The company aims to become a one‑stop trading venue for a wide array of asset classes, positioning itself against traditional exchange heavyweights such as CME Group and Intercontinental Exchange, the parent of the New York Stock Exchange.
Data from Dune Analytics shows Kalshi has already captured market share from its nearest rival, Polymarket, which has faced operational challenges and a Commodity Futures Trading Commission investigation. Polymarket, backed by Intercontinental Exchange, is also reportedly seeking $1 billion in new capital.
Investor pedigree
Chase Coleman’s Tiger Global has a long history of backing high‑profile technology companies, including OpenAI, ByteDance, Revolut and Flipkart. The firm recently closed a $2.2 billion venture fund (PIP 16) and is in the process of raising its next fund (PIP 17), bringing its assets under management to roughly $60 billion.
San Francisco‑based Dragoneer Investment Group, known for investments in OpenAI and SpaceX, is also a key potential participant. Both firms have demonstrated a willingness to double down on venture‑stage technology bets despite a broader market slowdown that began in 2022.
Regulatory backdrop and future plans
Kalshi operates under the oversight of the Commodity Futures Trading Commission, a factor that has drawn attention from lawmakers concerned about investor protection in the fast‑growing prediction‑market space. U.S. Senator Adam Schiff, among others, has recently raised questions about the sector’s rapid expansion.
In addition to the funding effort, Kalshi has hinted at an initial public offering in the next few years, according to the same sources and a recent interview with CNBC’s Tarek Mansour.
Representatives for Kalshi and Tiger Global declined to comment, while Sequoia, Wellington and Dragoneer did not respond to requests for comment.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
