According to a report by the overseas media outlet (The Information), citing people familiar with the matter, prediction market leader Kalshi is in talks with top venture capital firm Sequoia Capital and Wellington Management for a new round of fundraising. It plans to raise at least $750 million at a valuation of $40 billion.

An insider said Sequoia Capital and Wellington are considering leading investment in Kalshi’s current funding round, with the amount potentially exceeding $750 million. Sequoia Capital is an investment firm headquartered in Silicon Valley, with assets under management (AUM) of about $56 billion, and it already has senior executives serving as directors of Kalshi.

As for Wellington, headquartered in Boston with $1.3 trillion in assets under management, it has for the first time extended an olive branch to Kalshi. The company has long been precise in positioning its private equity investments ahead of companies’ initial public offerings (IPOs). Earlier reports said Kalshi has begun preliminary but informal discussions with multiple investment banks to assess the possibility of launching an IPO in the future.

Kalshi raised $100 million at a valuation of $20 billion only in May this year, and it is currently the top revenue-ranked prediction market platform. Its biggest rival hot on its heels, Polymarket, hasn’t been idle either. It’s reported that after Polymarket secured a $600 million investment from the Intercontinental Exchange Group (ICE), the parent company of the New York Stock Exchange (NYSE), at a $15 billion valuation in August this year, it is now seeking to kick off a new round of fundraising at a valuation of $20 billion.

Benefiting from the global betting frenzy sparked by the 2026 FIFA World Cup, Kalshi’s annualized revenue surged to $4 billion this July, with more than 80% of its trading volume coming from sports event contracts. By contrast, rival Polymarket’s annualized revenue over the same period was only about $1.1 billion.

Beyond the boom in business volume, Kalshi’s rollout in regulatory compliance and advanced trading products has been equally swift. The company announced on Wednesday that Jeff Bandman, a senior legal expert who previously helped Kalshi obtain U.S. Commodity Futures Trading Commission (CFTC) compliance trading exchange licensing in 2020, will be returning to the company as CEO of "Kalshi Prime." The subsidiary will focus on providing customers with margin-sustaining perpetual contract business.

"Sequoia Capital, Wellington in talks for lead investment! Kalshi plans to raise $750 million at a valuation of $40 billion"—this article was first published on (BlockNews).