Polymarket is seeking a new funding round at a target valuation of $20 billion, Bloomberg reported Tuesday, citing people familiar with the matter.
The fundraising effort points to the rapid inflow of capital into prediction markets, with Polymarket pushing to strengthen its position in the sector.
New raise follows April financing at $15 billion
According to the report, Polymarket completed a financing round in April at a $15 billion valuation. Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, invested $600 million in that round.
The backing from a major traditional finance operator has added to Polymarket’s profile in the prediction-market business.
Company said annualized revenue topped $1 billion
Polymarket has also pointed to strong revenue figures. In June, the company told CNBC that its annualized revenue had surpassed $1 billion.
While platform trading volume saw a short slowdown in April and May, activity later surged during the World Cup, reaching a record high and reversing the earlier softness.
Coplan calls Polymarket an information platform
Founder and CEO Shayne Coplan has repeatedly said Polymarket should be viewed as an “information platform,” not a gambling website.
At a public event in March, he said prediction markets allow people who disagree with mainstream consensus to “validate their judgment with real money.”
Coplan also described Polymarket as a “practical thermometer for observing the world,” saying it can help the public assess the probability of future events. He said his longer-term vision goes beyond politics, elections, or major news events and includes building an “Almanac for the Future” that offers market-based forecasts across a wide range of subjects.
Coinbase, Robinhood and Kalshi expand in prediction markets
Prediction markets in the United States are growing quickly, drawing interest from both crypto firms and online brokerage platforms.
Coinbase (NASDAQ: COIN), the largest cryptocurrency exchange in the U.S., and Robinhood (NASDAQ: HOOD), the retail-focused online brokerage, have both integrated prediction-market functions into their product offerings.
Kalshi, Polymarket’s biggest rival, is also pursuing fresh capital. According to outside media reports cited in the source material, Kalshi is seeking a new round at a $40 billion valuation, nearly double its previous fundraising valuation.
Different models for Polymarket and Kalshi
The two companies operate in the same market, but their business structures differ.
Kalshi uses a federally regulated exchange model in the U.S. and offers regulated event contracts. Polymarket, by contrast, is built on blockchain infrastructure and settles trades in cryptocurrency, which has helped attract crypto investors and on-chain traders.
As traditional finance and crypto firms both step up their push into the sector, prediction markets are moving beyond a niche use case, and the competition between Polymarket and Kalshi is becoming more intense.