- Kalshi is pursuing new funding at a reported $40 billion valuation after rapid growth in trading activity.
- Monthly trading volume exceeded $17 billion, driven largely by sports, financial, and event-based contracts.
- Investors are weighing strong revenue growth against ongoing legal and regulatory challenges in several states.
Kalshi is reportedly seeking fresh funding at a valuation of about $40 billion, according to the Financial Times, less than two months after raising $1 billion at a $22 billion valuation. The fundraising discussions could conclude as early as the third quarter of 2026 and come as the CFTC-regulated prediction market platform continues to post fast trading growth across multiple event-based markets.
Trading Growth Fuels Investor Interest
The reported fundraising effort follows a sharp rise in Kalshi’s activity over the past year. According to the Financial Times, the platform recorded more than $17 billion in trading volume last month, compared with less than $5 billion during the same period a year earlier.
That growth has attracted major investors. Kalshi’s May 2026 funding round included Coatue, Sequoia Capital, Andreessen Horowitz, Morgan Stanley, IVP, Paradigm, and ARK Invest.
Notably, institutional participation also increased significantly. Kalshi previously disclosed that institutional trading volume climbed 800% over six months.
As discussions continue, company data shows sports-related contracts account for roughly 65% of total trading volume. Sports markets have become one of the platform’s largest activity drivers, alongside contracts tied to economics, politics, weather, crypto, and financial markets.
New Products Expand Platform Activity
Alongside event contracts, Kalshi recently expanded into crypto-linked products. According to reports, CFTC-regulated crypto perpetual futures generated $5.5 billion in volume during their first two weeks after launching on June 3.
CEO Tarek Mansour previously said perpetual futures could become the company’s fastest customer acquisition channel. He also stated during the May funding announcement that event contracts could eventually develop into a trillion-dollar market.
Meanwhile, Kalshi’s reported annualized revenue reached $2 billion by June 2026. Reports also showed World Cup-related activity generated $5.1 billion in trading volume during a single week.
Legal Challenges Remain in Focus
While fundraising discussions advance, regulatory disputes continue. Several U.S. states have challenged Kalshi’s sports-related contracts, arguing they resemble unlicensed sports betting operations.
Kentucky filed a lawsuit against Kalshi, Polymarket, and VGW on June 17. Additionally, Illinois enacted legislation requiring prediction market operators to obtain state licenses.
Kalshi maintains that its contracts fall under CFTC oversight. CFTC Chairman Michael Selig has also backed federal jurisdiction in ongoing legal disputes involving regulated prediction markets.
As negotiations continue, investors are evaluating both Kalshi’s growth metrics and the outcome of ongoing regulatory proceedings.
