Kalshi's Valuation Nearly Doubles To $40B Since May

Kalshi, the prediction-market platform where users trade on real-world events, raised $1 billion in a Series G that values the company at $40 billion, as reported by The Information, nearly double its $22 billion valuation from May 2026.

By the Numbers

$40B
New valuation
$1B
Round size
$22B
Prior valuation, May 2026
$263.5M
2025 fee revenue
89%
Share from sports contracts
Trace Cohen
By Trace Cohen · Value Add Pulse Funding Desk
Founder & Editor-in-chief, Value Add VC
2 min read
Kalshi's Valuation Nearly Doubles To $40B Since May: key figures
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THE RUNDOWN

1

Kalshi's valuation nearly doubled in five months even as Utah criminally charged the company and its CEO over election and sports contracts, showing investors pricing regulatory risk at a steep discount.

2

The round makes Kalshi one of the most richly valued fintech startups in the US, roughly four times rival Polymarket's reported $9B mark from October 2025.

3

Kalshi's 2025 fee revenue of $263.5M, with 89% from sports contracts, shows the business model still leans heavily on sports-betting-adjacent demand rather than diversified prediction markets.

4

A prediction market projected to reach $95.5B by 2035 is attracting the same mega-fund investors, Sequoia and Paradigm among them, chasing AI infrastructure, a signal of where late-stage dollars are rotating.

The VC Read

Value Add VC analysis

The diligence item that matters here isn't the headline multiple, it's concentration risk: 89% of Kalshi's disclosed fee revenue comes from sports contracts, and the company is simultaneously fighting state-level gambling charges in Utah. A $40B mark prices in federal preemption winning cleanly against state regulators, a bet every later-stage holder in this round is now making alongside Kalshi's founders. Watch the state court dockets, not the next funding round, for the real catalyst.

Analysis

Kalshi, the New York-based prediction-market platform where users trade contracts on the outcome of elections, sports and economic events, raised $1 billion in a Series G round that values the company at $40 billion, The Information reported October 29, 2026. Source

The new mark is close to double the $22 billion valuation Kalshi carried just five months earlier.

What Kalshi does

Tarek Mansour and Luana Lopes Lara founded Kalshi in San Francisco in 2018 before the exchange relocated to Manhattan, where it launched publicly in July 2021 as a federally regulated platform for trading event contracts, according to Wikipedia. The company does not disclose its total user count, but it reported $263.5 million in fee revenue for 2025, with 89% of that coming from sports-related contracts, the clearest public evidence that sports betting, not election or economic forecasting, drives most of Kalshi's current business.

“The new mark is close to double the $22 billion valuation Kalshi carried just five months earlier.”

Our Pulse previously covered Kalshi's appearance at an August 2026 White House crypto meeting alongside Coinbase and Ripple.

How much has Kalshi raised

Kalshi has raised roughly $4.1 billion in tracked venture funding, with its valuation climbing in a series of step-ups over less than a year:

  • Series E, December 2025 — $1B, led by Paradigm, valuing Kalshi at $11B.
  • Series F, May 2026 — $1B, led by Coatue Management, valuing Kalshi at $22B.
  • Funding round, August 2026 — $1.12B, valuation undisclosed.
  • Series G, October 2026 — $1B, valuing Kalshi at $40B.

Sequoia and CapitalG led an intermediate round between those marks, according to a November 2025 report from The Block.

Who invested in Kalshi

Backers across Kalshi's rounds include Paradigm, Coatue Management, Sequoia Capital, CapitalG, Andreessen Horowitz, Anthos Capital, Neo, Multicoin Capital and Cathie Wood's Ark Invest, according to The Block and Decrypt.

Andreessen Horowitz and Sequoia have each backed Kalshi across multiple rounds, the kind of repeat-lead pattern that has also shown up this week in other mega-rounds like Serval's Series C.

Prediction markets and competitors

The prediction-market industry Kalshi operates in could reach $95.5 billion by 2035, growing at a 46.8% compound annual rate, according to a market estimate cited by Decrypt.

Kalshi's clearest rival, Polymarket, was valued at $9 billion in October 2025 after a $2 billion investment from Intercontinental Exchange, the owner of the New York Stock Exchange, meaning Kalshi's new mark values it at roughly four times its closest competitor.

What to watch next

However, Kalshi's valuation run has coincided with rising regulatory friction, not falling friction: Utah criminally charged Kalshi and its CEO with illegally promoting online gambling this week, adding to a long-running fight between prediction-market operators and state gaming regulators who argue federal commodities law shouldn't preempt state gambling bans. A $40 billion valuation assumes Kalshi keeps winning that argument in court, a bet that looked safer in May than it does with state charges now active.

The 89% concentration in sports-contract fee revenue also means Kalshi's growth is tied closely to the US sports calendar, a seasonality dynamic that traditional fintech or exchange comparables rarely have to manage, and one the company has not addressed publicly even as it markets itself as a general-purpose prediction market for elections and economic events.

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Key Sources

1 source

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