Kalshi in talks for new funding at $65 billion valuation, Bloomberg reports

Prediction marketplace Kalshi is in talks with investors to raise new capital at a $65 billion valuation, marking a sharp step-up just weeks after finalizing a funding round at $40 billion, Bloomberg reported. The discussions indicate sustained private-market demand for the fast-scaling exchange ahead of its anticipated initial public offering.

While the late-October financing was initially expected to serve as Kalshi’s final private raise before going public, management opted to tap private investors once more. Although broader financial market uncertainty has prompted hesitation among other prospective IPO candidates, volatility did not factor into Kalshi’s decision to pursue additional pre-IPO funding, one person familiar with the matter told Bloomberg.

The higher valuation target reflects rapid operational momentum, with monthly notional trading volume more than doubling from $40 billion in August to nearly $100 billion in October. Founded in 2018, Kalshi has captured the lead in the prediction market sector, driven largely by sports betting over the past year, while generating roughly 90% gross margins and surpassing $5 billion in annual run-rate revenue.

Alongside its fundraising efforts, Kalshi moved to streamline its governance on Thursday by cutting ties with adviser Donald Trump Jr. A company spokesperson told Bloomberg that the parties mutually agreed to end the role, which began just prior to President Donald Trump’s second inauguration, following a significant summer investment in chief rival Polymarket by Trump Jr.’s firm, 1789 Capital.

Trump Jr., who received Kalshi equity as advisory compensation, had simultaneously held an official advisory post at both competing platforms. His departure removes a prominent political flashpoint as Kalshi and the broader prediction market industry brace for heightened scrutiny in Washington.

Having previously benefited from strong backing by the Trump administration, Kalshi now faces shifting regulatory dynamics after Democrats made substantial gains in the recent midterm elections. Incoming congressional Democrats have pledged to examine the Trump family’s business ties to prediction markets and the cryptocurrency sector, signaling potential political headwinds as Kalshi prepares for an eventual public listing.