The rapidly expanding market for crypto-based prediction platforms is seeing soaring valuations, with Polymarket reportedly in discussions for a capital raise that could push its worth to USD $15 billion.
This potential valuation represents a significant increase from the company’s current USD $9 billion. It also marks a more than tenfold growth in just four months.
Bloomberg reported the preliminary talks, citing sources familiar with the matter. The discussions are targeting a valuation range of USD $12 billion to USD $15 billion.
Polymarket’s rise signals broader investor interest and a competitive “arms race” within the prediction market segment. Rival platform Kalshi is also attracting investor interest for a valuation exceeding USD $10 billion.
Kalshi recently raised over USD $300 million at a USD $5 billion valuation. It is now reportedly receiving offers in the range of USD $10 billion to USD $12 billion. Both platforms have seen soaring trading volumes.
Founded in 2020 by CEO Shayne Coplan, Polymarket operates as a blockchain-based prediction market. Users can bet on yes/no outcomes for various real-world events, including politics, sports, financial markets, and culture.
The platform is built on the Polygon network. It supports deposits from various cryptocurrency ecosystems, including Ethereum, Base, Arbitrum, Solana, and recently Bitcoin. Polymarket has also introduced new markets for stock prices and indices.
Just weeks ago, Polymarket secured a USD $2 billion investment from Intercontinental Exchange (ICE), the owner of the New York Stock Exchange. This investment valued the company at USD $9 billion post-funding.
The ICE investment positioned Coplan as one of the youngest self-made billionaires. Earlier, in June, Polymarket had closed a USD $150 million funding round led by Peter Thiel’s Founders Fund, valuing the company at USD $1.2 billion.
The company had paused its U.S. operations in 2022 due to regulatory uncertainty. However, it recently gained approval from the Commodity Futures Trading Commission (CFTC) to relaunch in the U.S.
Polymarket also serves as a designated clearinghouse for DraftKings if the sports betting company launches a prediction market. It holds a multi-year licensing agreement with the National Hockey League (NHL).
A potential POLY token launch could further enhance Polymarket’s position in the expanding industry. The current capital raise discussions are still in initial stages, and specific investors involved have not been revealed.