Kalshi Prediction Market News: What Trader Must Know Before October 13

Kalshi Prediction Market News: Funding, Valuation and Trader Rewards

The latest Kalshi Prediction Market News points to a big step up for the company. It is reportedly in advanced talks to raise about $1 billion. The round could value the company at around $40 billion. That would be a major moment for the prediction market sector.

It is also ending its volume incentive program, no earlier than October 13. Together, these two developments show how the platform is shaping its growth and business strategy.

At a Glance

• Funding: About $1 billion

• Potential valuation: Around $40 billion

• Previous valuation: $22 billion in May 2026

• Potential valuation increase: About 82%

• Investors in discussions: Sequoia Capital, Wellington Management, Tiger Global, Dragoneer

• Volume incentive program: Ending no earlier than October 13

• August trading volume: About $37.17 billion

• Potential IPO: Early discussions for the coming years

Kalshi Seeks $1 Billion at $40 Billion Valuation

Reuters reported on September 29 that Kalshi news is in advanced funding discussions. Sources say the round could close in the coming weeks.

The numbers show fast growth. The market was valued at $22 billion after a $1 billion raise in May 2026. The new round would lift that to about $40 billion, a gain of roughly 82%.

Sequoia Capital, an existing investor, is reportedly in talks to lead with Wellington Management. Tiger Global and Dragoneer are also in discussions. These are talks, not a completed deal, and terms can still change. Kalshi and Tiger Global declined to comment. Sequoia, Wellington and Dragoneer did not respond to Reuters.

Source: Wu Blockchain

Kalshi Funding and Valuation Timeline

Source: Reuters

Why Is Kalshi Ending Its Volume Incentive Program?

The program paid traders from reward pools based on their share of eligible volume. Its goal was to boost liquidity and trading activity.

According to The Block, a filing with the CFTC says the program will end effective no earlier than October 13. The filing does not say that every reward or incentive on the platform is ending. It covers this one program only.

The timing fits a wider shift. It appears to be moving from a niche prediction platform toward a larger trading venue. A mature platform may rely less on paid incentives to attract activity.

Kalshi Expands Beyond Traditional Prediction Markets

It first grew on markets tied to sports and election outcomes. Reuters says the company now wants to offer many more asset classes. The goal is to become a one-stop trading platform.

That plan puts the prediction markets in the same conversation as CME Group and Intercontinental Exchange, the parent of the New York Stock Exchange. Prediction markets are also becoming places where traders take positions on big names such as Nvidia and Apple.

Growth brings scrutiny. Reuters noted rising concerns about investor protection and market oversight. Several lawmakers, including Senator Adam Schiff, have raised questions about how fast the sector is growing.

Kalshi vs Polymarket: Market Growth and Competition

Reuters reports that Kalshi has passed Polymarket in market share over the past year, citing Dune Analytics data. Polymarket has faced struggles around its US launch and a CFTC investigation.

Polymarket is not standing still. It is separately seeking about $1 billion in new funding, and Intercontinental Exchange is among its biggest backers. Both platforms are drawing strong investor interest. It is too early to say which one will lead in the long run.

ARK Invest Adds Kalshi to ETF Strategy

On September 30, Cathie Wood said ARK Invest has added Kalshi to its crypto ETF strategies. She praised the management team and said it is positioned for where prediction markets are heading.

This matters as context for Kalshi's reach, since August trading volume was about $37.17 billion. Note that it is still a private company. This is an investment strategy move, not a public listing.

Source: Cathie Wood

What Could Kalshi's $40 Billion Valuation Mean for Its Next Phase?

A $40 billion valuation would show strong investor appetite. It would also give more money to build new markets across more asset classes.

It has held early talks about an IPO in the coming years. CEO Tarek Mansour discussed the idea in a recent CNBC interview. No IPO date or final plan has been announced.

Readers should watch for these next steps:

• Completion of the funding round

• Any changes to the incentive program

• New market launches

• Regulatory developments

• A formal IPO filing

Conclusion

Two things define this week's Kalshi Prediction Market News. The company may raise $1 billion at a $40 billion valuation, and it plans to end its volume incentive program. Both tie into a push for broader markets and tougher competition with Polymarket. The next weeks will show whether the round closes and how regulators respond.

Disclaimer: This article is for news and informational purposes only. Funding talks, valuations, trading volumes, and IPO plans can change before they are finalized. Prediction market activity and crypto assets carry high risk, including the loss of your full investment. This is not financial advice. Please do your own research and consult a licensed financial adviser before making any decision.