Market forecasting platforms Kalshi and Polymarket are exploring fundraising rounds that could value each company at around $20 billion, according to a Wall Street Journal report.
Both companies recently discussed new funding rounds with potential investors, according to people familiar with the matter. Each platform was last valued at about half that amount late last year.
Negotiations remain preliminary and may not lead to an agreement, and there is no guarantee that either company will meet that valuation as scrutiny continues to grow around the prediction markets.
Kalshi already operates in the United States and offers markets on topics ranging from sports and politics to economic events and pop culture. The company was valued at about $11 billion in December after raising $1 billion from investors including Paradigm and Sequoia Capital.
Founded in 2018 by Tarek Mansour and Luana Lopez Lara, Kalshi became the first regulated exchange for event-based markets in 2020 after receiving approval from the Commodity Futures Trading Commission.
The company recently surpassed $1 billion in annual revenue, and some estimates put the number closer to $1.5 billion.
Founded in 2020 by Shane Coplan, Polymarket is currently limited to US users, but plans to launch a domestically regulated version of its platform this year.
The platform was last valued at around $9 billion in October, after the owner of the New York Intercontinental Exchange agreed to invest $2 billion.
The two companies have recently clashed over markets related to geopolitical events, including bets on a possible US attack on Iran and the future of Iran’s supreme leader.
Lawmakers also began pushing for tighter controls. US Representatives Blake Moore and Salud Carbajal have introduced legislation aimed at restricting prediction markets from offering contracts related to war and sports.
At the same time, both companies aggressively pursued new users through social media advertising and campus outreach programs aimed at college communities.
