Prediction market platforms Kalshi and Polymarket are reportedly exploring significant funding rounds that could value each company at approximately $20 billion. These early discussions with potential investors follow valuations of about half that amount late last year. The talks are preliminary, and deal outcomes are not guaranteed as scrutiny around prediction markets intensifies.
Kalshi, already operational in the US, offers diverse markets from sports to economic events. The company was previously valued at $11 billion after a $1 billion raise in December. Founded in 2018 and regulated by the CFTC since 2020, Kalshi has reported an annualized revenue run rate nearing $1.5 billion.
Polymarket, founded in 2020, currently limits US users but aims to launch a regulated domestic platform this year. Its last valuation was around $9 billion after an investment from Intercontinental Exchange.
Both platforms have recently faced scrutiny over markets tied to geopolitical events, prompting legislative proposals for tighter oversight on contracts related to war and sports. Despite this, both companies continue aggressive user acquisition strategies.