Market Watch

Polymarket Weighs Financing at $9-10B Valuation while Kalshi is Close to Raising at $5B valuation

Prediction market platforms Polymarket and Kalshi are considering raising additional capital at valuations of $9 billion and $5 billion, respectively, according to The Information, which cited anonymous sources. “Polymarket has considered an offer that would value the company as much as $9 billion, according to people who have spoken to the company’s leaders,” The Information reported. “That would be a huge jump in price for the startup, which raised money at a $1 billion valuation earlier this summer.”

At least one investor offered a term sheet valuing Polymarket as high as $10 billion,  Business Insider reported. Polymarket, which allows users to wager on events including elections and sports, like NFL football, is expected to relaunch in the United States. “Polymarket has been given the green light to go live in the USA by the @CFTC,” CEO Shayne Coplan said earlier this month.

The Information also reported that Polymarket’s competitor Kalshi “is close to raising money at a $5 billion valuation.” That would be more than double the $2 billion valuation Kalshi achieved when raising capital a few months ago. Meanwhile, the amount of activity recorded on the two platforms appears to be narrowing. Kalshi registered $875 million in volume for August compared to Polymarket’s $1 billion.

Polymarket’s existing investors include Peter Thiel’s Founders Fund. Kalshi investors include Paradigm and Sequoia Capital. The two platforms, for now, have different profiles. While Kalshi operates as a CFTC-regulated company in the U.S. that requires dollar deposits and traditional KYC procedures, Polymarket operates on Polygon using USDC settlements, offering pseudonymous trading and broader global accessibility.

Not wishing to sit out getting involved in — what is essentially another form of legal gambling — other major crypto enterprises are also keen for a piece of the action. Crypto.com and Underdog are both rolling out sports prediction markets in 16 U.S. states while Coinbase is exploring its own platform. Others are teaming with incumbents such as X naming Polymarket its official prediction partner.

Kalshi has teamed with popular trading app Robinhood. In terms of funding, The Block Data shows that 2025 has been the strongest year yet for prediction markets with more than $216 million raised across 11 deals. That surge follows $80 million in 2024, nearly $60 million in 2021, and minimal activity in previous years.

Terron Gold

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