Date of Publication: October 23, 2025, 11:46 AM.
Most Recent Update: October 23, 2025, 11:46 AM.
- Recent developments arise two weeks post company valuation reaching up to $10 billion.
- Kalshi reportedly exploring investment opportunities with a valuation target of $12 billion.
- Polymarket’s valuation was just $1 billion in June.
Kalshi and Polymarket have recently attracted significant investment at remarkable valuations, with insights suggesting that Polymarket may now be exploring another funding round, potentially valuing the company between $12 billion and $15 billion.
According to unverified sources mentioned in Bloomberg, Polymarket is contemplating a new funding round, targeting a valuation between $12 billion and $15 billion. This news comes shortly after Intercontinental Exchange (NYSE: ICE), which owns the New York Stock Exchange, acquired a $2 billion stake in Polymarket, marking a pre-money valuation of $8 billion.
This transaction made Shayne Coplan the youngest self-made billionaire on record, with Polymarket now valued between $9 billion and $10 billion following the investment. If the new funding round proceeds as speculated, the company could see its value increase by 20% to 50% compared to just over two weeks ago.
Prominent investors in Polymarket include Peter Thiel’s Founders Fund, Donald Trump Jr., and Ethereum co-founder Vitalik Buterin. Notably, Trump Jr.’s firm, 1789 Capital, invested multiple millions in Polymarket last August, while he holds advisory roles at both Kalshi and Polymarket. Thiel remains in a favorable position with his $200 million investment at a $1 billion valuation back in June.
Kalshi’s Valuation on the Rise
Less than three weeks following a substantial funding round that increased its valuation to $5 billion, Kalshi is reportedly engaging with potential investors for another financing round that could elevate its worth to between $10 billion and $12 billion.
The surge in investment interest for Kalshi coincides with record-breaking trading volumes in prediction markets across the U.S., mainly driven by the football season. While professional investors are keen on these markets, they may be overlooking inherent risks associated with Kalshi.
For instance, Polymarket—Kalshi’s closest rival—hasn’t launched in the U.S. due to ongoing governmental challenges. Once Polymarket officially enters this market, competition with Kalshi is expected to heighten.
Moreover, Robinhood Markets (NASDAQ: HOOD), which handles nearly 35% of Kalshi’s daily trading volume, has suggested that it may either pursue acquisitions in prediction markets or develop an in-house platform, indicating a potential shift away from its current partnership with the derivatives exchange.
Kalshi’s competitive landscape has further intensified as DraftKings (NASDAQ: DKNG), a major player in online sports betting, announced its acquisition of Railbird Technologies, the parent company of the prediction markets firm Railbird Exchange. The company plans to introduce DraftKings Predictions shortly, directly competing with Kalshi.
In Relation to DraftKings…
While DraftKings entering the prediction market may pose challenges for Kalshi and others, it spells opportunity for Polymarket. The latter stands to benefit as it is set to process transactions for DraftKings Predictions.
“Congratulations to DraftKings on their acquisition of Railbird,” Coplan shared in a post on X. “We are excited to act as their designated clearinghouse as they venture into the prediction market arena.”
Polymarket’s capabilities as a clearinghouse stem from its $112 million acquisition of QCEX LLC, a clearinghouse and derivatives exchange, which was announced in June, paving the way for Polymarket’s potential return to the U.S. market.