Prediction market platforms Kalshi and Polymarket are reportedly in early-stage discussions for substantial fundraising rounds, with each company seeking valuations around $20 billion. These potential deals would represent a significant increase from their late 2025 valuations.
Prediction markets enable users to trade contracts based on the outcomes of real-world events across various categories, including sports and politics, allowing for the monetization of information.
Kalshi, founded in 2018 and operating under CFTC approval in the U.S., previously raised $1 billion at an $11 billion valuation in December 2025 and reportedly has an annualized revenue run rate nearing $1.5 billion.
Polymarket, established in 2020, was valued at $9 billion in October 2025 following a commitment of up to $2 billion in investment from Intercontinental Exchange.
Both platforms are experiencing substantial growth. Kalshi currently has over $400 million in open interest, while Polymarket holds around $360 million. Weekly trading volumes are robust, with Polymarket exceeding $1.9 billion and Kalshi near $1.87 billion.
The burgeoning popularity of prediction markets has attracted attention from major financial players, with companies like Coinbase and Robinhood entering the space. Wall Street institutions, including Nasdaq and Cboe, are also exploring offerings similar to prediction market betting for traditional markets.