The prediction market Polymarket is in early discussions with investors to raise fresh funds at a potential valuation ranging between 12 and 15 billion dollars, according to people familiar with the matter. The move comes amid unprecedented investor enthusiasm for platforms that merge financial speculation with event-based trading.
A Tenfold Jump In Four Months
Polymarket’s valuation surge has been remarkable. Just four months ago, the startup was valued at 1 billion dollars after a 200 million dollar round led by Peter Thiel’s Founders Fund in June 2025. Earlier this month, Intercontinental Exchange Inc., which owns the New York Stock Exchange, announced plans to invest up to 2 billion dollars in Polymarket at an 8 billion dollar valuation. That deal made CEO Shayne Coplan one of the youngest self-made billionaires in the tech world.
If the latest talks succeed, Polymarket’s valuation will have grown more than tenfold since the summer — a pace rarely seen in fintech. The company has declined to comment on the ongoing discussions.
Prediction Markets Go Mainstream
Polymarket and its main competitor Kalshi are driving the new wave of prediction-based financial platforms that allow users to trade on real-world outcomes — from elections and sports events to economic indicators. These platforms have exploded in popularity, attracting both Wall Street traders and retail users looking to profit from real-time information.
Kalshi is also in the middle of its own fundraising process, reportedly targeting a valuation exceeding 10 billion dollars, more than double its last funding round. Together, these valuations underscore how rapidly the prediction market sector is maturing, blurring the lines between traditional finance and regulated wagering.
Trading activity has reached record highs. The combined weekly trading volume for Polymarket and Kalshi recently crossed 2 billion dollars, surpassing the previous peak during the last US presidential election cycle.
Institutional And Sports Partnerships
Polymarket has been actively expanding its partnerships with major players across industries. Earlier this week, the company announced that it would act as a clearinghouse for DraftKings Inc., signaling a potential merger of prediction markets and fantasy sports. In another major development, the National Hockey League signed multiyear partnerships with both Polymarket and Kalshi — the first major US sports league to collaborate with prediction platforms.
Regulatory Uncertainty Still Looms
Despite the industry’s meteoric rise, prediction markets continue to operate in a regulatory gray zone. While the Commodity Futures Trading Commission has permitted Kalshi to launch certain event-based markets, state gaming regulators are still debating how to classify these activities as investments, wagers, or both.
Concerns over market manipulation and insider trading remain under review, and both Polymarket and Kalshi are working closely with regulators to ensure compliance as their platforms grow.
Still, the strong institutional interest suggests that prediction markets could soon transition from niche trading arenas to mainstream financial products. With Polymarket’s upcoming round potentially valuing it at 15 billion dollars, the company is now firmly positioned as one of the most valuable startups redefining the future of market speculation.
Follow You Finance on Instagram and Facebook for breaking financial news, startup updates, and market insights from around the world.
