Prediction market platforms Kalshi and Polymarket are exploring fundraising rounds that could value each company at nearly $20 billion, according to a Wall Street Journal report.
The two companies recently held preliminary discussions with potential investors about further fundraising, according to people familiar with the matter. Each rig was last valued at about half that amount late last year.
The talks remain preliminary and may not result in agreements, and there is no guarantee that either company will achieve this valuation as attention to market forecasts increases.
Kalshi already operates in the United States, offering markets on topics ranging from sports and politics to economic events and pop culture. The company was valued at around $11 billion after raising $1 billion in December from investors including Paradigm and Sequoia Capital.
Founded in 2018 by Tarek Mansour and Luana Lopes Lara, Kalshi became the first regulated exchange for event-driven markets after receiving approval from the Commodity Futures Trading Commission in 2020.
The company recently surpassed annualized revenue of $1 billion, with some estimates placing the figure closer to $1.5 billion.
Polymarket, founded in 2020 by Shayne Coplan, currently restricts U.S. users but plans to launch a regulated domestic version of its platform this year.
The platform was last valued at around $9 billion in October after New York Stock Exchange owner Intercontinental Exchange agreed to invest up to $2 billion.
Both companies have recently faced market scrutiny tied to geopolitical events, including bets on a possible U.S. strike on Iran and the future of Iran’s supreme leader.
Lawmakers have also begun pushing for stricter oversight. U.S. Reps. Blake Moore and Salud Carbajal introduced legislation to prevent prediction markets from offering contracts related to topics such as war and sports.
At the same time, both companies actively sought new users through social media advertising and campus outreach programs targeting college communities.
