Polymarket, a prediction market platform, is holding early discussions with investors about a potential funding round. The startup could be valued between $12 billion and $15 billion, up sharply from four months ago, Bloomberg reported.

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Polymarket’s main competitor, Kalshi, is also attracting investor interest. Offers could value Kalshi at over $10 billion, more than doubling its prior valuation. Both companies have seen rising trading volumes. During the week ending Oct. 19, combined trading surpassed $2 billion, exceeding the previous peak during last year’s US presidential election.

Previous Funding and Investments

In June, it raised $200 million in a round led by Peter Thiel’s Founders Fund, valuing the company at $1 billion. Earlier this month, Intercontinental Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Inc. said it would invest up to $2 billion at a valuation of about $8 billion.

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Polymarket declined to comment on the latest talks.

💥BREAKING:

POLYMARKET IS SEEKING FUNDING AT A VALUATION OF UP TO $15B! pic.twitter.com/wsbsrOCAG0

— Crypto Rover (@cryptorover) October 23, 2025

Partnerships and Market Expansion

Wall Street firms and gambling companies have shown interest in the platforms. Polymarket will act as a clearinghouse Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term for DraftKings in its entry into prediction markets. The National Hockey League has signed multiyear deals with Polymarket and Kalshi, becoming the first major US sports league to partner with the platforms.

Regulatory Uncertainty

Regulatory uncertainty remains. The Commodity Futures Trading Commission has allowed Kalshi to open new markets. State gaming regulators have challenged some activities in court. Legal questions remain over market manipulation and insider trading.

Polymarket and Kalshi Draw Investor Interest

Kalshi has become the largest player in regulated prediction markets, accounting for about 62–65% of sector trading volume in mid-October, according to Dune Analytics. During the same period, Polymarket held roughly 35–37% of volume.

Kalshi’s markets see faster turnover, while Polymarket’s positions tend to remain open longer. Differences reflect each platform’s structure and regulatory environment, with Kalshi operating under US oversight and Polymarket primarily serving international users through blockchain-based contracts.