Prediction market platforms Kalshi and Polymarket are each reportedly in early discussions for new funding rounds that would value them near $20 billion, approximately double their most recent valuations. The talks with potential investors are preliminary and may not result in a deal. Kalshi, a U.S.-regulated platform, was last valued at $11 billion in December. Polymarket, which plans a U.S. launch later this year, was valued at roughly $9 billion last October.
Prediction market platforms Kalshi and Polymarket are reportedly exploring new fundraising rounds that could value the companies at around $20 billion each. Both platforms have held preliminary discussions with potential investors about raising fresh capital at the elevated valuation, though negotiations remain at an early stage and may not result in deals.
Kalshi currently operates in the United States and allows users to wager on outcomes tied to sports, politics, the economy, and cultural events. The company was last valued at about $11 billion in December when it raised $1 billion from investors including Paradigm and Sequoia Capital.
Founded in 2018, Kalshi received approval from the U.S. Commodity Futures Trading Commission in 2020 to operate as a regulated exchange. The platform has since expanded rapidly and recently surpassed a $1 billion revenue run rate, with some estimates placing the figure closer to $1.5 billion.
Polymarket, launched in 2020, remains inaccessible to U.S. users without a virtual private network but plans to introduce a regulated domestic version later this year. The company was valued at roughly $9 billion in October after Intercontinental Exchange agreed to invest up to $2 billion.
Both platforms have drawn attention from lawmakers and regulators. U.S. Democratic lawmakers are drafting legislation to regulate prediction markets after suspiciously timed bets raised insider-trading concerns.
Senator Chris Murphy alleged that individuals close to the White House may have used advance knowledge of an attack on Iran to place bets. He noted that several Polymarket accounts reportedly made about $1 million by wagering just hours before explosions were reported in Tehran.
Polymarket has faced multiple insider trading allegations after several traders placed unusually well-timed bets on major events. A small group of crypto wallets recently made more than $1.2 million betting on a market tied to an onchain investigation into DeFi platform Axiom shortly before blockchain investigator ZachXBT published claims.
In a separate incident last month, another Polymarket account reportedly earned about $400,000 after placing a large wager on the capture of Venezuelan President Nicolás Maduro shortly before the news became public. This further raised questions about whether some traders had advance information.
