Prediction Market Platforms Seek Capital at $20 Billion Valuations

Prediction market platforms Kalshi and Polymarket are reportedly in preliminary discussions to secure funding at valuations approaching $20 billion each. According to NS3.AI, these targeted valuations would nearly double their previous rounds, where Kalshi was valued at $11 billion and Polymarket at approximately $9 billion. In February, the combined monthly trading volume on these platforms increased to around $18.3 billion, with Kalshi achieving an annualized revenue run rate exceeding $1 billion amid significant growth. However, both companies are encountering increasing regulatory scrutiny in the United States, including proposed legislation that could restrict contracts related to war, sports, and government actions.