Polymarket, a prediction market platform, is holding early discussions with investors about a potential funding round. The startup could be valued between $12 billion and $15 billion, up sharply from four months ago, Bloomberg reported.

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Polymarket’s main competitor, Kalshi, is also attracting investor interest. Offers could value Kalshi at over $10 billion, more than doubling its prior valuation. Both companies have seen rising trading volumes. During the week ending Oct. 19, combined trading surpassed $2 billion, exceeding the previous peak during last year’s US presidential election.

Previous Funding and Investments

In June, it raised $200 million in a round led by Peter Thiel’s Founders Fund, valuing the company at $1 billion. Earlier this month, Intercontinental Exchange Inc. said it would invest up to $2 billion at a valuation of about $8 billion.

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Polymarket declined to comment on the latest talks.

Partnerships and Market Expansion

Wall Street firms and gambling companies have shown interest in the platforms. Polymarket will act as a clearinghouse for DraftKings in its entry into prediction markets. The National Hockey League has signed multiyear deals with Polymarket and Kalshi, becoming the first major US sports league to partner with the platforms.

Regulatory Uncertainty

Regulatory uncertainty remains. The Commodity Futures Trading Commission has allowed Kalshi to open new markets. State gaming regulators have challenged some activities in court. Legal questions remain over market manipulation and insider trading.

Polymarket and Kalshi Draw Investor Interest

Kalshi has become the largest player in regulated prediction markets, accounting for about 62–65% of sector trading volume in mid-October, according to Dune Analytics. During the same period, Polymarket held roughly 35–37% of volume.

Kalshi’s markets see faster turnover, while Polymarket’s positions tend to remain open longer. Differences reflect each platform’s structure and regulatory environment, with Kalshi operating under US oversight and Polymarket primarily serving international users through blockchain-based contracts.

Source: Finance Magnates