Kalshi and Polymarket Secure Major Funding Rounds
Prediction market platforms Kalshi and Polymarket recently saw a major surge in capital interest. Both companies are now in talks with investors that would value each startup at over billion, according to reports from Bloomberg. This rapid increase in valuation signals sharp growth for the nascent prediction market sector.
Polymarket Valuation Soars After ICE Investment
Polymarket is discussing new funding at an estimated valuation between billion and billion. This potential figure is more than ten times the company’s value just four months prior.
The Intercontinental Exchange Inc. (ICE), owner of the New York Stock Exchange (NYSE), announced a maximum investment of billion earlier this month. That deal valued Polymarket at about billion.
The transaction reportedly made CEO Shayne Coplan a self-made billionaire. In June, a funding round led by Peter Thiel’s Founders Fund gave the startup a billion valuation. Polymarket also announced it will act as a clearinghouse for DraftKings Inc. as the sports betting giant expands into prediction markets.
Kalshi Nears Billion Valuation Mark
Kalshi, a key competitor, is receiving venture capital funding offers that value the company at over billion. Sources familiar with the matter indicated investors have discussed financing the firm at valuations ranging from billion to billion or higher.
This current discussion more than doubles Kalshi’s value from just weeks ago. The firm had recently announced a million funding round that set its valuation at billion.
Earlier this month, Kalshi announced a funding round co-led by Andreessen Horowitz and Sequoia Capital. In June, the company raised million at a billion valuation in a transaction led by crypto-focused Paradigm.
Co-founder and CEO Tarek Mansour stated this month that Kalshi recently reached billion in annual trade volume. The company used its financial license to open betting on sports contests nationwide, which helped boost its trading volume.
Sector Growth Hits Trading Volume Records
Both firms recently saw a sharp increase in trading volume. Polymarket and Kalshi reached a new peak of over billion in combined volume during the week ending October . This weekly total exceeded the previous high set during the last US presidential election.
The National Hockey League (NHL) has also entered multi-year agreements with both Kalshi and Polymarket. The NHL is the first major US sports league to partner with prediction market platforms.
The quickly growing value of both companies highlights increasing interest in this new industry. The sector acts where financial and gambling markets meet. Prediction markets are a breakthrough category attracting major capital outside of the artificial intelligence (AI) sector.
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