Kalshi Has Pursued $1 Billion Funding Round
The prediction market exchange is in talks for a $40 billion valuation following rapid institutional growth.
Updated on Sept. 29, 2026 in Investing
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The CFTC-regulated exchange Kalshi has entered advanced discussions to raise $1 billion in private capital. This potential funding round would value the firm at $40 billion, marking an 82% increase from its valuation in May 2026.
Why it matters
Institutional market participants have increasingly adopted event contracts as a legitimate asset class for speculation and hedging. This surge in institutional activity, combined with growth in retail interest, has propelled the company to hold over 90% of the prediction market share in the United States.
The company reported annualized trading volume of $178 billion with revenue exceeding $1.5 billion. Institutional trading volume surged 800% in the six months leading up to May 2026.
The players
Kalshi
This CFTC-regulated exchange allows users to trade contracts based on the outcomes of real-world events.
Tarek Mansour
He is a co-founder of the prediction platform who helped establish the firm as a dominant force in U.S. markets.
Luana Lopes Lara
She co-founded the company and serves as a key leader in its expansion into institutional trading spaces.
The details
Kalshi allows users to trade contracts on the outcomes of real-world events, operating under the regulatory oversight of the CFTC. The firm has successfully closed three significant funding rounds since October 2025, during which it raised a combined $2.3 billion before the current negotiations.
Timeline
October 2025: Raised $300 million at a $5 billion valuation.
December 2025: Raised $1 billion at an $11 billion valuation.
May 2026: Raised $1 billion at a $22 billion valuation.
September 2026: Reported to be in advanced funding talks.
Coming weeks: Expected timeframe for closing the $1 billion round.
Market Dynamics
The rapid growth of the firm highlights the broader acceptance of event contracts within the Commodity Futures Trading Commission regulatory framework, marking a shift from niche speculation to a mainstream institutional asset class. This expansion reflects a structural change in how market participants utilize prediction markets for complex financial hedging.
As prediction markets move further into the institutional mainstream, individual investors may see increased liquidity and more diverse contract offerings on platforms. However, users should remain aware that event contracts carry unique risks compared to traditional equities and fixed-income assets.
The takeaway
The move suggests that prediction markets are rapidly evolving from retail-focused entertainment into a serious tool for institutional finance. Readers should keep in mind that as these markets scale, the regulatory environment may continue to shift in response to increased volume and complexity.
Further reading
For more on how event-based assets are changing portfolios, see the Investing section.
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