Polymarket is hosting a round of fundraising at a valuation above $20 billion as the company’s prediction markets continue to explode in popularity nationwide.
CNBC reported that a source familiar with the situation confirmed Polymarket’s latest endeavor, which would mark a sizable increase on the April fundraising round led at a $15 billion valuation. Bloomberg was the first to report on the fundraising talks.
A staggering valuation
Polymarket revealed in late June that its annualized revenue had already cruised past $1 billion, thanks in part to the launch of its regulated U.S. exchange in May. Polymarket now operates a self-named global brand and Polymarket US, which is licensed by the Commodity Futures Trading Commission (CFTC).
The general belief is that Polymarket is hoping to add another $1 billion in financing during its ongoing fundraising. Its top rival, Kalshi, completed $1 billion in fundraising at a $22 billion valuation in May.
Although a successful round would put Polymarket back on par with Kalshi, reports suggest that Kalshi is eyeing a near-100% increase in its valuation. The Financial Times reported in June that Kalshi was eyeing a third-quarter fundraising round at an astonishing $40 billion valuation, reflecting the surging momentum of the prediction industry.
A successful closing on the round of funding would mark Polymarket’s first since it launched its U.S.-regulated platform. Prior to that, American users could add themselves to a waitlist as early as December.
Insights show that Polymarket generated more than $100 million in daily notional trading volume in its prediction markets, soaring past the $75 million figure it produced when its American platform launched.
Dune Analytics reported that Polymarket’s global brand is still sitting north of $150 million for daily trading volume.
Polymarket growing prediction markets
Polymarket and other prediction markets allow customers to trade “Yes” and “No” outcomes related to real-world events. These can be seemingly anything in sports, politics, finance, weather, entertainment, pop culture, and more industries.
Prediction markets enjoyed a lucrative period during the FIFA World Cup in June and July. Kalshi, Polymarket, and Polymarket US combined to generate an all-time combined notional trading volume of $50.6 billion during the second tournament month, a 7.8% increase from June’s $47 billion.
Kalshi accounted for the largest share of July activity at $37.7 billion, up 14% month-over-month. Polymarket US surged 54% to $5 billion, while its offshore platform plummeted 26% to $7.9 billion. Polymarket and Polymarket US combined to generate $12.9 billion in July trading volume, which was down about 7.9% from June’s $12.9 billion.
The lack of prominent sporting events and world affairs during August would suggest that prediction markets offered by Kalshi, Polymarket, and other competitors could experience a rare decline — especially following the World Cup intrigue. However, the industry basically hasn’t slowed down since it went mainstream around last fall.
The upcoming NFL season and midterm elections will also provide traders with seemingly endless options once September arrives.
The Trade Handle Prediction Markets Take
Polymarket is doing its best to keep pace with the torrid tempo set by the ever-controversial Kalshi, whose CEO, Tarek Mansour, recently named three entities not named Polymarket as his top competitors. The $20 billion valuation Polymarket is hoping to achieve would mark an approximate 33% increase since the platform was valued at $15 billion three months ago, serving as a reminder of how quickly prediction markets are growing in America. Polymarket also recently announced the launch of Polymarket Institute, which will add a research arm to understand prediction markets