Prediction market platforms Kalshi and Polymarket are exploring fundraising rounds that could value each company near $20 billion, according to a Wall Street Journal report.
Both companies have recently held early discussions with potential investors about new funding rounds, according to people familiar with the matter. Each platform was last valued at roughly half that amount late last year.
The talks remain preliminary and may not lead to deals, and there is no guarantee either company will secure that valuation as scrutiny around prediction markets increases.
Kalshi already operates in the United States, offering markets on topics ranging from sports and politics to economic events and pop culture. The company was valued at about $11 billion after raising $1 billion in December from investors including Paradigm and Sequoia Capital.
Founded in 2018 by Tarek Mansour and Luana Lopes Lara, Kalshi became the first regulated exchange for event-based markets after receiving approval from the Commodity Futures Trading Commission in 2020.
The company recently surpassed a $1 billion annualized revenue run rate, with some estimates placing that figure closer to $1.5 billion.
Polymarket, founded in 2020 by Shayne Coplan, currently restricts US users but plans to launch a regulated domestic version of its platform this year.
The platform was last valued at about $9 billion in October after New York Stock Exchange owner Intercontinental Exchange agreed to invest up to $2 billion.
Both companies have recently faced scrutiny over markets tied to geopolitical events, including wagers on a potential US strike on Iran and the future of Iran’s Supreme Leader.
Lawmakers have also begun pushing for tighter oversight. US Representatives Blake Moore and Salud Carbajal introduced legislation aimed at restricting prediction markets from offering contracts tied to topics such as war and sports.
At the same time, both companies have aggressively pursued new users through social media advertising and campus outreach programs targeting college communities.