Its Investors Say Kalshi Is Worth $40 Billion. Is an I.P.O. Next?

Kalshi just jumped out in front of its rival Polymarket in the eyes of investors.The prediction market company has closed a new round of funding that values it at $40 billion, its co-founder and chief executive, Tarek Mansour, said in an interview on Wednesday evening.That figure is nearly double the value given to Polymarket in its most recent round of financing.Kalshi completed a $1 billion fund-raising round last week, led by Sequoia Capital and Wellington Management, the company said.

Other investors who participated in the round included Baillie Gifford, Morgan Stanley Investment Management, Coatue Management and Andreessen Horowitz.Its previous funding round, in May, had valued the company at $22 billion.“What it means to us is we get the resources and the capital to build all the things that are on our product road map that our customers, both retail and institutional, want us to build,” Mr.

Mansour said.“Or the things that we have vision for.”The round, known as Series G, is widely expected to be the company’s last before an initial public offering, though Mr.

Mansour declined to comment on when or if that might happen, beyond noting that “there’s been discussions.”Prediction markets like Kalshi and Polymarket have exploded into cultural phenomena over the past couple of years.Bolstered by celebrity endorsements and partnerships with media outlets and major sports leagues, Kalshi has drawn tens of billions of dollars in wagers on everything from the winner of the Super Bowl to whether the Democrats will take control of Congress in next week’s midterm elections.Kalshi’s $40 billion valuation solidifies the start-up’s position as a dominant player.

In August, the company’s closest rival, Polymarket, was finalizing a fund-raising round led by Donald Trump Jr.’s venture capital firm, 1789 Capital, with a valuation of $21 billion.Mr.

Trump is also a paid adviser to Kalshi.We are having trouble retrieving the article content.Please e...