Kalshi raises $1B, vaulting valuation to $40B as founders reveal they used to date

Prediction market giant Kalshi has raised a fresh $1 billion in a funding round that values the company at $40 billion — as the company’s co-founders fessed to dating back in the day.The massive deal that comes amid mounting legal and regulatory hurdles that threaten to upend the fast-growing company.  Kalshi said Thursday its business of offering wagers across a slew of real-world events — from sports and the Oscars to the weather — has continued to expand since its previous financing in May.Back then, it was valued at $22 billion.The latest deal was co-led by top Silicon Valley venture firm Sequoia Capital and investment firm Wellington Management.

It brings Kalshi’s total amount raised to roughly $3.6 billion. The New York-based company attributed its recent growth to increased trading on events including this year’s FIFA World Cup, NFL games and election-related markets ahead of the US midterms. At the same time, Kalshi – led by CEO Tarek Mansour and his No.2 exec Luana Lopes Lara – faces a landslide of legal complaints, particularly over its sports wagers.They admitted they used to date in an interview with Bloomberg published this week.Asked about the matter, Lara said it was “a long time ago.”“The company always comes first for us, essentially” Mansour said.“By the time we started the company, it was basically already fizzled out and, um, company above all else,” he added.

“And, you know, it’s worked out for us.”Shayne Coplan, the CEO of prime Kalshi rival Polymarket, repeatedly circulated the rumor that Mansour and Lopes Lara used to date, as first reported by The Post.Since August, two US appeals courts have ruled that states have the power to regulate sports-related event contracts – significant setbacks for Kalshi’s arguments that the federal government should continue to have oversight of prediction markets. Sports betting is key for Kalshi, accounting for as much as 70% of an estimated $4 billion in revenue d...