Polymarket Eyes Funding Up to 15 Billion, Kalshi Also Draws Investor Interest

Polymarket is planning a funding round to expand its operations. The prediction market platform is currently discussing with investors for evaluation and to determine the amount of funds needed. Polymarket could be valued at about $15 billion, a significant increase from four months ago.

Polymarket And Kalshi Seek More Funding For Expansion

As Polymarket continues to seek more funding, its competitors are also doing the same. The firm’s main competitor, Kalshi, is gaining popularity among investors. The firm is also looking to raise additional capital and could be valued at $10 billion, doubling its previous valuation. Both firms are enjoying a sharp increase in trading volumes. Last week, the companies’ combined trading exceeded $2 billion, surpassing the previous peak during President Trump’s presidential election last year.

Polymarket has seen a steady, rapid rise in its valuation. In June this year, the company received $200 million in a funding round, led by Peter Thiel’s Founders Fund. Following the funding, the company was valued at $1 billion. Earlier this month, another major firm, Intercontinental Exchange, invested in Polymarkets. The exchange invested $2 billion at a valuation of $8 billion.

Polymarkets and Kalshi have both attracted interest from gambling companies and Wall Street. Polymarket has been chosen to act as a clearinghouse for DraftKings, a new entrant into the prediction market space. Kalshi and Polymarket have partnered with the National Hockey League. This means the League has become the first major sports league to partner with both platforms.

Ploymarkets And Kalchi Still Face Regulatory Concerns

Despite the companies’ growth and expansion, they still face some regulatory issues. There are still legal uncertainties caused by insider trading and market manipulation in the industry. Some state gaming regulators have questioned the companies’ activities in court. But the Commodity Futures Trading Commission has approved Kalshi to open new markets despite the regulatory issues.

Kalshi is one of the largest players in the regulated prediction markets. According to Dune Analytics, the firm accounts for about 65% of sector trading volume in mid-October. During the same period, Ploymarket still maintains a 35-37% market share.

Polimarket positions tend to stay open longer while Kalshi’s markets see the fastest turnover.  Differences reflect each platform’s regulatory environment and structure. Polymarket serves international users via blockchain-based contracts. On the other hand, Kalshi operates under the regulation of US watchdogs.

However, both prediction markets are growing steadily and hope to use the funding round to expand into other jurisdictions.