Polymarket Seeking Funding at Valuation Up to $15B: Bloomberg

Leading prediction markets Polymarket and Kalshi have both begun to pursue new funding rounds, each targeting valuations above $10 billion amid rising interest in prediction markets, Bloomberg reports.

What's the scoop?

• Polymarket’s Funding Talks: Polymarket is reportedly seeking additional capital at a $12 billion to $15 billion valuation, following a jump from $1.2 billion in June to $9 billion this month after Intercontinental Exchange agreed to invest up to $2 billion.
• Kalshi’s Investment Offers: Meanwhile, Kalshi is reportedly fielding bids at $10 billion to $12 billion, less than two weeks after raising over $300 million at a $5 billion valuation.
• Platform Expansions: Polymarket added bitcoin deposits, equity and index markets, and plans U.S. re-entry after a 2022 halt, while announcing it will clear for DraftKings' potential prediction market and securing NHL licensing.
• Trading Volume Growth: Both platforms report soaring volumes, with Polymarket hitting an all-time high for markets created last month, though volume for Polymarket still remains below its Nov. 2024 peak.

Bankless Take:

The rapid valuation climbs for Polymarket and Kalshi underscore prediction markets' breakout from niche to mainstream, fueled most recently by growth in their sports betting markets, an interesting maneuver which has “reframed” these gambling markets as prediction markets. It also comes as both vie for mindshare on Crypto Twitter, with a wave of new affiliates coming up as each platform looks to turn content creators into traders, and vice versa, to expand their brand reach. They’ve also released builder programs, supporting platforms which look to add analytics or automated strategies for either market.