Kalshi Inc. is finalizing a financing round that would value the prediction market platform at around $40 billion, according to people familiar with the matter. The round is expected to be the startup's last before an initial public offering, which could come as soon as next year. The proposed valuation would be almost four times Kalshi's $11 billion valuation from December and follows a March fundraising at $22 billion. Kalshi has benefited from record trading volumes, particularly in football, the World Cup and other sporting events. The company had about 90% gross margins, according to documentation viewed by Bloomberg News, while its annualized revenue was about $4 billion as of August. Sequoia Capital and Wellington Management are discussing leading the financing. Kalshi's August trading volume exceeded $40 billion, four times the level six months earlier, based on user-compiled data on Dune Analytics. Its rival Polymarket is finalizing a separate round at a $21 billion valuation led by 1798 Capital. Both platforms are regulated nationwide as financial exchanges by the CFTC (U.S. derivatives regulator), unlike traditional sportsbooks, which fall under state gaming regulators.