Prediction market platform Polymarket is in preliminary discussions to raise $1 billion at a valuation of above $20 billion, according to sources familiar with the ongoing negotiations.
The latest discussions come only a few months after the platform closed a $15 billion funding round in April.
Polymarket Looks To Raise $1 Billion
If the latest funding round is successful, it would likely double Polymarketโs October 2025 valuation of $9 billion. The company secured a $15 billion valuation during its April funding round, bringing hedge fund D.E. Shaw & Co. and venture capital firm G Squared on board as new investors. Polymarket also secured a $600 million investment from Intercontinental Exchange Inc. during Aprilโs funding round, bringing the total investment close to $1 billion.
Since the April funding round, Polymarket has launched its US exchange and reported annualized revenue of over $1.2 billion. Daily notional volume on Polymarketโs US exchange has crossed $100 million, a substantial increase from the $75 million reported in May. Negotiations remain at an early stage, with no term sheet, closing date, or final investor sheet publicly available. A $20 billion valuation would value Polymarket nearly 33% higher than the April 2026 funding round, and more than twice Bloombergโs October 2025 valuation.
Why Polymarket Has A Strong Case For Higher Valuation
Polymarketโs return to the US market as a regulated entity gives it a highly regulated growth channel and bolsters its case for a higher valuation. Polymarket US is listed as QCX LLC, a designated contract market, in the Commodity Futures Trading Commissionโs (CFTC) official registry. Polymarket has submitted rule changes, liquidity programs, surveillance, and trading procedures since its listing. According to Bloomberg, Polymarket opened its US exchange after its April 2026 funding round.
Polymarketโs reported revenue growth supports the platformโs push for a higher valuation, and trading data revealed a significant jump in trading activity on the US platform.
Kalshiโs $22 Billion Valuation
Kalshi, Polymarketโs biggest rival, announced a Series F funding round at a $22 billion valuation. The funding round was led by Coatue, with investments from Andreessen Horowitz, Sequoia Capital, IVP, Paradigm, AKR Invest, and Morgan Stanley. The prediction market reported an 800% increase in trading volume, while its annualized trading volume rose from $52 billion to $178 billion. Kalshi also claimed it controlled over 90% of the US prediction market when it announced the funding round, while independent data showed Kalshi processed over three times the combined volume of Polymarketโs international and US platforms.
Polymarket plans to leverage its crypto settlement infrastructure, international reach, brand recognition, and partnership with Intercontinental Exchange to narrow the valuation gap with Kalshi.
Ongoing Regulatory Disputes Could Hamper Funding
Polymarket US is facing lawsuits in several US states that argue sports events contracts equate to gambling and are subject to state, not federal, laws. Polymarket and QCX were also the subject of a civil complaint filed by the Nevada Gaming Control Board to stop companies like Polymarket from offering unlicensed wagering in Nevada. Both Polymarket and Kalshi are also locked in a dispute about whether the Commodity Exchange Act gives the CFTC exclusive authority over prediction markets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
