Kalshi Raises $1 Billion at $40 Billion Valuation

Kalshi has raised $1 billion in a funding round that values the prediction-market operator at $40 billion, as it pursues plans to expand into financial products beyond event contracts. The round, announced Thursday, was co-led by Sequoia Capital and Wellington Management. Tiger Global Management and Dragoneer Investment Group also participated, according to reports citing people familiar with the financing. Kalshi’s latest valuation is nearly 82% higher than the $22 billion valuation attached to its previous $1 billion round in May. The company says it aims to build a broader trading platform. It has already introduced cryptocurrency perpetual futures and expanded into products tied to equity indexes and metals. In a blog post about the financing, Kalshi said planned additions include leveraged event contracts, perpetual futures linked to individual stocks and markets tied to computing prices. The company also plans to invest further in its institutional business. Kalshi reported in September that it worked with about 500 institutional entities, which accounted for roughly 25% of trading volume excluding market makers. The company has said annualized trading volume rose from...