Kalshi and Polymarket weigh funding rounds at $20B valuations

A Wall Street Journal report says that “prediction market platforms Kalshi and Polymarket are looking at fundraising rounds to raise money for each company near $20 billion.”

The company, who has been familiar with the subject, said that both companies have recently had early discussions with investors about new funding rounds. It was last valued at around half that late last year for each platform by , and the value of each site.

Talks remain preliminary and may not lead to deals, and there is no guarantee either company will secure valuation as scrutiny around prediction markets bolsters valuation.

In the United States, Kalshi already operates in America with markets for sports and politics to economic events as well as pop culture. It raised $1 billion in December from investors Paradigm and Sequoia Capital, which invested about $11 billion into the company.

With the approval of the Commodity Futures Trading Commission in 2020, Kalshi became the first regulated exchange for event-based markets after being established in 2018 by Tarek Mansour and Luana Lopes Lara.

The company recently exceeded a $1 billion annualized revenue run rate, with some estimates that the figure is closer to $1. a 5 billion-billion .

Shayne Coplan’s Polymarket, which was founded in 2020, currently restricts US users but plans to launch a controlled domestic version of its platform this year.

It was last valued at about $9 billion in October when New York Stock Exchange owner Intercontinental Exchange agreed to invest up to $2 billion.

The two companies have recently been under scrutiny over markets linked to geopolitical events, such as wagers on a potential US strike on Iran and the future of Iran’s Supreme Leader.

Similarly, politicians have begun to push for tighter oversight of the . In a move, US Rep. Blake Moore (left) and Salud Carbajal introduced legislation designed to limit prediction markets from offering contracts related to topics such as war and sports.

meanwhile, both firms have aggressively pursued new users through social media advertising and campus outreach programs targeting college communities.

Edited by Estefano Gomez **Disclosure This article was adapted from **DiscLOSure. Read Our Editor’s Policy for more information on how we create and review content. ****

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