- Kalshi and Polymarket may raise funding at $20B valuations, about double their 2025 levels.
- Prediction markets allow users to trade contracts tied to events like elections, sports, and politics.
- Combined monthly trading volume for Kalshi and Polymarket reached about $18.3B in February.
Prediction market platforms Kalshi and Polymarket are in early discussions to raise new funding at valuations near $20 billion each, according to the Wall Street Journal. The talks, still preliminary, could double both companies’ previous valuations from late 2025. The discussions have not been finalized, and neither company confirmed details publicly.
Valuations and Recent Fundraising
Kalshi, founded in 2018 by Tarek Mansour and Luana Lopes Lara, raised $1 billion in December at an $11 billion valuation. The platform recently achieved an annualized revenue run rate of about $1.5 billion, according to sources cited by the WSJ.
Polymarket, founded in 2020 by Shayne Coplan, was valued at $9 billion in October after Intercontinental Exchange committed up to $2 billion in investment. Both companies lead in the prediction market sector.
Prediction markets let users trade contracts tied to real-world events, including sports, politics, and elections. Users buy and sell contracts based on their expectations of outcomes, effectively monetizing information on world events.
Kalshi operates under Commodity Futures Trading Commission approval, while Polymarket recently started opening a domestic waitlist after receiving clearance from the CFTC.
Trading Volume and Market Presence
According to Dune data, Kalshi has open interest exceeding $400 million, while Polymarket sits at $360 million. Weekly notional volume reached $1.87 billion for Kalshi and $1.9 billion for Polymarket.
Combined monthly trading volume across both platforms totaled roughly $18.3 billion in February, up sharply from under $2 billion in August 2025. Kalshi leads Polymarket in monthly volume, largely driven by sports contracts.
Regulation and Competition
Both platforms face growing regulatory scrutiny. U.S. legislators recently proposed limits on contracts involving war, sports, and government actions. Polymarket currently restricts U.S. user access without a VPN, while Kalshi is fully operational domestically.
Competitors, including Coinbase, Robinhood, DraftKings, Gemini, and Crypto.com, have launched or announced prediction market offerings. Wall Street exchanges Nasdaq and Cboe are also exploring binary betting products.
The potential $20 billion fundraising rounds highlight continued investor interest in prediction markets amid regulatory developments and expanding competition.
