Polymarket Mulling Capital Raise at $9 Billion Valuation, Kalshi at $5 Billion
Posted on: September 14, 2025, 12:34h.
Last updated on: September 14, 2025, 12:34h.
- Reports indicate Polymarket is considering raising capital at $9 billion valuation
- That’s well in excess of the $1 billion valuation at its last funding round
- Rival Kalshi is said to be mulling raising capital at a $5 billion valuation
Prediction market behemoths Polymarket and Kalshi are rumored to be evaluating fresh fundraising that would value the companies at $9 billion and $5 billion, respectively — well ahead of the valuations recently placed on the firms.
Polymarket investors include Peter Thiel’s Founders Fund, Donald Trump Jr., and Ethereum co-founder Vitalik Buterin, among others. Trump Jr.’s 1789 Capital firm made a double-digit, multimillion-dollar investment in Polymarket in August. He occupies advisory roles at both Kalshi and Polymarket.
Polymarket has considered an offer that would value the company as much as $9 billion, according to people who have spoken to the company’s leaders,” The Information reported. “That would be a huge jump in price for the startup, which raised money at a $1 billion valuation earlier this summer.”
Sources speaking on the condition of anonymity told another publication that at least one unidentified investor made an offer for a stake in Polymarket valuing that company at $10 billion.
Kalshi, Polymarket Valuations Rapidly Ballooning
Assuming the speculation regarding Kalshi and Polymarket potentially being valued at $5 billion and $9 billion is accurate, it confirms the multiples investors are willing to place on the derivatives exchanges have swelled exponentially in a matter of months.
Kalshi wrapped up a $185 million Series C funding round in June valuing the company at $2 billion. Around the same time, Polymarket completed a capital raise at a $1 billion valuation. Said another way, Kalshi’s valuation has more than doubled in 90 days. As for Polymarket, it appears its valuation floor is now $3 billion, meaning its valuation has tripled in just a few months.
At valuations of $9 billion and $5 billion, respectively, Polymarket and Kalshi would be valued in excess of Rush Street Interactive (NYSE: RSI) — a pure-play iGaming/sports betting stock with a market capitalization of $4.83 billion as of Sept. 12.
At those rumored price points, Kalshi and Polymarket could also be valued comparably to or ahead of some well-known interactive gaming brands that are subsidiaries of larger omni-channel gaming entities.
Investors Keen on Prediction Markets
As was the case in the early day of the online sports betting boom, private market investors are displaying clear enthusiasm for prediction markets operators — companies that are increasingly clashing with the sports wagering industry. Much of that ebullience is driven by prediction markets’ intersection with cryptocurrency, which is a trait not possessed by regulated sportsbooks.
Some yes/no derivatives exchanges are either rooted in entirely in crypto or, at the very least, allow clients to fund accounts in select digital currencies, paving the way for expanded use cases.
This year is the best on record for prediction market fundraising with the total already resting at $216 million over 11 deals, or more than double the amount raised last year and well over triple the tally notched in 2021, according to The Block.
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