Prediction-market platforms Kalshi and Polymarket are in early discussions about fundraising rounds that could value each company near $20 billion, according to a Wall Street Journal report.
People familiar with the talks say both firms have had preliminary meetings with potential investors. Each was worth roughly half that amount late last year, and discussions may not lead to deals amid growing scrutiny of prediction markets.
Kalshi, which operates in the U.S., offers markets on sports, politics, economic events and pop culture. It was valued at about $11 billion after raising $1 billion in December from backers 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 obtaining Commodity Futures Trading Commission approval in 2020. The company recently passed a $1 billion annualized revenue run rate, with some estimates nearer $1.5 billion.
Polymarket, founded in 2020 by Shayne Coplan, currently restricts U.S. users but plans to launch a regulated domestic version this year. It was last valued around $9 billion in October after Intercontinental Exchange, owner of the New York Stock Exchange, agreed to invest up to $2 billion.
Both platforms have drawn scrutiny for markets tied to geopolitical events, including wagers on a possible U.S. strike on Iran and bets related to Iran’s Supreme Leader. Lawmakers have moved to tighten oversight: Representatives Blake Moore and Salud Carbajal introduced legislation seeking to limit prediction markets from offering contracts on topics such as war and sports. Meanwhile, both companies are expanding user acquisition through social-media ads and campus outreach programs targeting college communities.
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