Kalshi, the New York-based event-contract exchange, has raised $1 billion in a funding round that values the company at $40 billion.
The round was co-led by Sequoia Capital and Wellington Management, and brings Kalshi's total amount raised to roughly $3.6 billion.
The company, founded in 2018 by MIT alumni Tarek Mansour and Luana Lopes Lara, lets users trade "yes" or "no" contracts on real-world outcomes spanning sports, elections, the Oscars and weather, with contracts settling at $1 or $0.
Kalshi attributed its growth since its last raise to heavy trading around this year's FIFA World Cup, NFL games and midterm election markets.
Its previous round, a $1 billion Series F in May led by Coatue, valued the company at $22 billion, meaning the valuation has risen by roughly 82% in about five months, according to kansascity.com.
Other participants in the new round reportedly included Baillie Gifford, Andreessen Horowitz, Coatue and Morgan Stanley Investment Management.
The raise lands amid mounting legal pressure. Two US appeals courts have ruled since August that states can regulate sports-related event contracts.
Utah's attorney general this week brought criminal charges against Kalshi and its founders.
The Ninth Circuit ruled against the company last month in a tribal-sovereignty case that could reach the Supreme Court.Mansour has said he is prepared to take the jurisdictional disputes that far.
Asked about their relationship, Lopes Lara called it "a long time ago"; Mansour said "the company always comes first for us, essentially."
The round is widely viewed as potentially Kalshi's last major private financing before an initial public offering, though Mansour said no timetable had been decided.
Read more about Fintech
