Polymarket in Talks to Raise Funds at Over $20 Billion Valuation
Prediction platform Polymarket is seeking to raise $1 billion at a valuation exceeding $20 billion. The company faces stiff competition from Kalshi and an ongoing investigation by the CFTC.
The prediction platform Polymarket is seeking to raise capital at a valuation of more than $20 billion, just months after closing a previous round that included an investment from the hedge fund D.E. Shaw & Co, according to a report by Bloomberg. The report states that Polymarket is in early talks with potential investors to raise $1 billion.
If the round is closed, its valuation will be more than double that set in October 2025, when it raised funds at a $9 billion valuation. Its prominent competitor, Kalshi, reported in May that it had raised funds at a $22 billion valuation. Since the beginning of the year, Kalshi has significantly outpaced Polymarket in growth rate, while the latter has encountered operational and legal difficulties.
In April, Polymarket completed a funding round at a $15 billion valuation, in which D.E. Shaw and the venture capital fund G Squared joined as new investors. In that same round, the closing of which had not been reported until now, long-time investors SV Angel, Dragonfly, and Valor Equity Partners also participated. Polymarket declined to comment on the report.
Polymarket, led by Shayne Coplan, allows users to bet on the outcomes of real-world events. Since April, the company has opened its platform in the US, and its annualized revenue has tripled to more than $1.2 billion. Betting volumes surged during the World Cup in June and July, but last month Kalshi hosted a trading volume three times larger than that of Polymarket, according to data from Dune Analytics.
At the same time, Polymarket is under investigation by the US Commodity Futures Trading Commission (CFTC) due to its activity on social networks, following reports of promoting fake marketing. A spokesperson previously said that the company had launched an audit of its promotional content to ensure it meets regulatory and legal requirements.
