Kalshi's valuation hits $40 billion

Prediction market platform Kalshi raised $1 billion in its latest funding round. With this investment, the company's total valuation reached $40 billion.

The round, called Series G, was co-led by Wellington and Sequoia. Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading and Balyasny Asset Management also took part as investors.

The company reported that its annual trading volume has surpassed $1 trillion. Kalshi offers event contracts tied to topics such as elections, interest rates and cost of living. The company plans to use the funding for enterprise sales, distribution and product development. Its goal is to serve hedge funds, proprietary trading firms and financial institutions.

Kalshi said it is also open to moving beyond prediction markets. Even so, the company faces regulatory challenges in the US amid growing backlash against the sector.