Private Markets: Kalshi announces new funding at $11B valuation

Headlining this week’s private company news, Kalshi announced a Series E funding round of $1B at an $11B valuation.
 
This week’s private company news:

• Notion, a productivity software company, is in discussions to let some employees and early investors sell shares at a valuation of about $12B, according to people with knowledge of the matter, Bloomberg’s Ryan Gould, Crystal Tse and Bailey Lipschultz report. The deal is likely to raise about $200M, the people said. The company could consider an initial public offering as early as the end of 2026, one of the people said.
• OpenAI has entered into a definitive agreement to acquire neptune.ai, which it says will strength the tools and infrastructure that support progress in frontier research. Neptune has worked closely with OpenAI to develop tools that enable researchers to compare thousands of runs, analyze metrics across layers, and surface issues. “Neptune’s depth in this area will help us move faster, learn more from each experiment, and make better decisions throughout the training process,” OpenAI said. Terms of the deal have not been disclosed.  

Some of the biggest capital raises by private companies this week include: 

• Kalshi – The prediction markets company announced a Series E funding round of $1B at an $11B valuation. The round was led by Paradigm, with participation from Sequoia, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG, and Y Combinator. Publicly traded companies in the space include DraftKings (DKNG) and Flutter (FLUT).
• Eon – The first to unlock cloud data backups for enterprise AI announced that it has secured a $300M Series D funding round led by Elad Gil of Gil Capital. The round brings Eon’s total funding to $500M and increases the company’s valuation to $4B. Publicly traded companies in the space include Commvault (CVLT), Rubrik (RBRK), and Snowflake (SNOW).
• Angle Health – The vertically-integrated AI platform for healthcare benefits announced a $134M oversubscribed Series B round led by Portage and major investors including Blumberg Capital, Mighty Capital, PruVen Capital, SixThirty Ventures, TSVC, Wing VC, and Y Combinator. Publicly traded companies in the space include Oscar Health (OSCR), Cigna (CI), and UnitedHealth Group (UNH).
• 7AI – The company whose customers trust dynamic AI agents to get security work done at scale raised $130M in a Series A funding round. The raise was led Index Ventures, with participation from new investor Blackstone Innovations Investments. Greylock, CRV, Spark, and all other existing seed investors also participated in the round. Publicly traded companies in the space include Crowdstrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT).
• TRIANA Biomedicines – The biopharmaceutical company announced the closing of an oversubscribed $120M Series B financing round. Publicly traded companies in the space include Moderna (MRNA), BeiGene (BGNE), and Recursion Pharmaceuticals (RXRX).

Unicorns to watch this week:

• Genspark – The company, building AI agents to automate tasks, is valued at $1.25B after raising $275M in a Series B funding round. Publicly traded companies in the space include Palantir (PLTR), C3 AI (AI), and UiPath (PATH).
• Gamma – The company that specializes in AI-generated visuals is valued at $2.1B. Publicly traded companies in the space include Adobe (ADBE), Autodesk (ADSK), and Microsoft (MSFT).
• Modal – The AI cloud computing platform is valued at approximately $1.1B after raising $87M Series B. Publicly traded companies in the space include Amazon (AMZN), Alphabet (GOOGL), and (IBM).
• Fireworks AI – With an estimated valuation of $4B, the AI app builder’s customer base grew 10 times in 2024. Publicly traded companies in the space include Amazon, Snowflake, and Palantir.
  Substrate – The semiconductor fabrication startup founded in 2022 is valued at about $1B. Publicly traded companies in the space include ASML (ASML), TSMC (TSM), and Intel (INTC).

IPOs to watch: 

• Grayscale Investments (GRAY) – The company filed a prospectus for an initial public offering on the New York Stock Exchange under the ticker symbol “GRAY.” Grayscale says it is the largest digital asset-focused investment platform in the world, with $35B in assets under management as of September 30.
• Klook Technology (KLK) – The company, which identifies itself as “the largest pan-regional experiences platform in Asia-Pacific” by gross transaction volume in 2024, announced that it has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission relating to the proposed initial public offering of American Depositary Shares representing its ordinary shares.
• Speed Group (SPED) – The company filed a prospectus for 2.5M share initial public offering. It expects the IPO price to be in the range of $4.00 to $5.00 per. The company’s operating subsidiary, Speed Logistics, is an e-commerce logistics provider providing end-to-end logistics solution in Hong Kong, Europe and North America. The services include warehousing, customs clearance, air transportation, and final delivery from the European airports.
• Medline (MDLN) – The provider of medical-surgical products and supply chain solutions filed a prospectus for an initial public offering on the Nasdaq.
• Lendbuzz (LBZZ) – The company is offering an undetermined number of shares of its common stock and the selling stockholders identified in this prospectus are offering additional shares of common stock, according to an initial public offering prospectus filed with the SEC.

“Private Markets” is The Fly’s recurring series of stories on the latest moves in the private sector, largest unicorn companies and initial public offerings to watch. Fly subscribers, add $PRIVATE to your portfolio for alerts on breaking news in the startup and venture capital space.