Polymarket Eyes $15B Valuation in New Funding Round

Prediction market Polymarket is in early talks with investors to raise funds at a valuation between $12 billion and $15 billion, according to a Bloomberg report citing people familiar with the matter. This potential valuation marks a dramatic escalation from the company’s position just four months ago, when it raised $200 million in a round led by Peter Thiel’s Founders Fund that valued the startup at $1 billion. The projected $12-15 billion range represents approximately a 10-fold increase in valuation over a remarkably short timeframe.

The rapid valuation growth underscores the accelerating institutional interest in prediction markets. Earlier this month, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, announced plans to invest up to $2 billion in Polymarket at an $8 billion valuation. This commitment from one of the world’s leading exchange operators signals growing mainstream financial acceptance of prediction market platforms and their underlying technology.

Polymarket’s main rival, Kalshi, is also reportedly in talks for new funding that would value it at over $10 billion, more than double its worth from weeks ago when it raised $300 million at a $5 billion valuation. This parallel valuation surge across competing platforms indicates broad investor confidence in the prediction market sector rather than isolated excitement around a single company.

The simultaneous funding discussions at both Polymarket and Kalshi suggest a competitive race for market dominance is intensifying. With both companies potentially securing valuations in the double-digit billions, the prediction market space is rapidly evolving from niche platforms to mainstream financial instruments capable of attracting substantial institutional capital.

Polymarket continues to expand its mainstream reach through strategic partnerships with established brands across different industries. The platform has recently teamed up with DraftKings, the NHL, and OpenAI’s World project, demonstrating its appeal beyond traditional financial markets. These collaborations represent significant validation from both the sports and technology sectors, potentially opening new user bases and application scenarios for prediction market technology.

The partnership with DraftKings, a leading sports betting company, suggests potential synergies between prediction markets and traditional sports betting platforms. Meanwhile, the collaboration with the NHL marks one of the first major partnerships between a prediction market and a professional sports league, potentially setting a precedent for similar arrangements across other major sports organizations.

The involvement with OpenAI’s World project indicates the growing intersection between artificial intelligence and prediction markets, potentially exploring how AI systems can interact with and potentially enhance market-based forecasting mechanisms. These diverse partnerships collectively signal Polymarket’s strategy to position prediction markets as versatile tools with applications across entertainment, sports, and technology sectors.

The planned $2 billion investment from Intercontinental Exchange represents particularly significant validation for the prediction market sector. As the parent company of the New York Stock Exchange, ICE brings substantial credibility and institutional expertise to Polymarket’s operations. This level of commitment from a traditional financial market operator suggests prediction markets are being viewed as complementary to, rather than competitive with, established financial instruments.

The involvement of Peter Thiel’s Founders Fund in the previous $200 million round, combined with the current interest from mainstream financial institutions, demonstrates the cross-spectrum appeal of prediction market technology. From venture capital firms to established exchange operators, diverse financial players are recognizing the potential of these platforms to capture collective intelligence and provide alternative forecasting mechanisms.

As both Polymarket and Kalshi secure substantial funding at rapidly escalating valuations, the prediction market sector appears poised for significant expansion. The combination of institutional capital, strategic partnerships, and growing public awareness suggests these platforms may be transitioning from experimental concepts to established components of the broader financial and information ecosystem.