Funding Negotiations and Valuation
Kalshi, a prediction‑market exchange founded in 2018, is in discussions with investors to raise additional private capital at a valuation of $65 billion. This represents a substantial increase from the $40 billion valuation that was established in a financing round completed in late October, just weeks earlier.
Operational Momentum
The company’s monthly notional trading volume more than doubled, rising from $40 billion in August to almost $100 billion in October. Kalshi attributes this growth primarily to its sports‑betting offerings, which have become the dominant driver of activity over the past year.
Financial Performance
Kalshi reports gross margins of approximately 90 % and an annual run‑rate revenue exceeding $5 billion. These figures underscore the firm’s high‑margin business model and rapid scaling.
Governance Update
On the same day as the fundraising talks, Kalshi announced the termination of its advisory relationship with Donald Trump Jr. The parties mutually agreed to end the role, which had begun shortly before former President Donald Trump’s second inauguration. Trump Jr. had received equity in Kalshi as compensation for his advisory services and had simultaneously held an advisory position at rival platform Polymarket through his firm 1789 Capital.
Political and Regulatory Context
The departure of Trump Jr. removes a prominent political flashpoint as the prediction‑market industry anticipates increased scrutiny from Washington. Following the recent mid‑term elections, incoming Democratic members of Congress have signaled intent to examine the Trump family’s business ties to prediction markets and the broader cryptocurrency sector, potentially creating regulatory headwinds for Kalshi as it prepares for an eventual IPO.