Kalshi Seeks $40B Valuation Weeks After $1B Raise: FT

Kalshi, a regulated exchange for event contracts, is seeking a valuation of approximately $40 billion in a new funding round, according to a Financial Times report citing sources familiar with the matter. This valuation target comes just weeks after the company announced a $1 billion funding round in late April 2024, which valued the firm at $22 billion. The accelerated pursuit of higher valuation occurs amidst an escalating regulatory dispute between Kalshi and federal and state authorities. The U.S. Securities and Exchange Commission (SEC) has previously asserted that Kalshi's event contracts should be regulated as securities, a classification Kalshi disputes. The Commodity Futures Trading Commission (CFTC) has granted Kalshi an exemption to operate as a derivatives exchange. This regulatory tension could impact the company's growth trajectory and its ability to attract further investment.