Published on: September 14, 2025, 12:34h.
Updated on: September 14, 2025, 12:34h.
- Polymarket reportedly exploring capital raise at an estimated $9 billion valuation
- This exceeds the $1 billion valuation from its previous funding round
- Competitor Kalshi is rumored to be considering a capital raise at a $5 billion valuation
Major prediction market players Polymarket and Kalshi are said to be assessing new fundraising efforts that would appraise the companies at $9 billion and $5 billion, respectively — significantly above their recently assigned valuations.
Investors in Polymarket include notable figures such as Peter Thiel’s Founders Fund, Donald Trump Jr., and Ethereum co-founder Vitalik Buterin, among others. Trump Jr.’s investment firm, 1789 Capital, reportedly contributed a substantial multimillion-dollar investment to Polymarket in August and holds advisory roles at both Kalshi and Polymarket.
“Polymarket has reviewed an offer potentially valuing the company at $9 billion, as per sources connected to the company’s leadership,” The Information noted. “This represents a significant increase from the $1 billion valuation achieved earlier this summer.”
Confidential sources disclosed to another outlet that at least one undisclosed investor proposed a stake in Polymarket that values the firm at $10 billion.
Kalshi and Polymarket’s Valuations Surge
If the speculation regarding Kalshi and Polymarket’s potential valuations of $5 billion and $9 billion holds true, it confirms a rapid escalation in the multiples investors are applying to these derivatives platforms over just a few months.
Kalshi recently completed a $185 million Series C funding round in June, bringing its valuation to $2 billion. Concurrently, Polymarket finalized a capital raise at a $1 billion valuation. To put it differently, Kalshi’s valuation has more than doubled in just 90 days. Meanwhile, Polymarket’s valuation appears to have tripled to a minimum of $3 billion.
With estimates of $9 billion for Polymarket and $5 billion for Kalshi, both could surpass the valuation of Rush Street Interactive (NYSE: RSI), which has a market capitalization of $4.83 billion as of September 12.
Given those rumored valuations, Kalshi and Polymarket might be valued similarly to, if not exceeding, various well-known interactive gaming brands that operate under larger omni-channel gaming conglomerates.
High Investor Interest in Prediction Markets
Similar to the early days of the online sports betting surge, private investors are showing robust interest in operators of prediction markets — companies increasingly competing with traditional sports wagering platforms. Much of this enthusiasm stems from the relationship between prediction markets and cryptocurrency, a feature not available within regulated sportsbooks.
Some yes/no derivatives exchanges either operate entirely on cryptocurrency or at least permit funding through select digital currencies, paving the way for broader utilization.
This year marks a record high for prediction market fundraising, with total amounts already reaching $216 million across 11 deals, more than double last year’s total and over triple the figure from 2021, as reported by The Block.