Kalshi, Polymarket Eye Values $20B in Fundraising: WSJ
Prediction markets platforms Kalshi and Polymarket are reportedly exploring new fundraising rounds worth the companies at around $20 billion each.
Both platforms have held preliminary talks with potential investors about raising new capital at higher rates, the Wall Street Journal reported on Friday, citing people familiar with the matter. The report indicated that the negotiations remain at an early stage and may not result in agreements or confirm targets.
Kalshi currently operates in the United States and offers markets that allow users to bet on results related to sports, politics, economics and cultural events. The company was last valued at $11 billion in December after raising $1 billion from investors including Paradigm and Sequoia Capital.
In the year The platform has expanded rapidly since then and recently surpassed $1 billion in revenue, with some estimates putting the figure closer to $1.5 billion.
Related: Kalshi, Polymarket suspended trading in Nevada after court ruling
Polymarket plans to launch in the US at the end of this year
In the year Polymarket, which was launched by Shane Coplan in 2020, remains inaccessible to US users without a virtual private network, but plans to introduce a local version of the system later this year. The company was valued at $9 billion in October after Intercontinental Exchange, which owns the New York Stock Exchange, agreed to invest up to $2 billion.
Both platforms have attracted the attention of lawmakers and regulators. Cointelegraph reports that U.S. Democratic lawmakers are preparing legislation to regulate prediction markets, raising concerns about insider trading with dubious bets on the timing of U.S. and Israeli strikes on Iran.
Senator Chris Murphy said individuals close to the White House may have used advance knowledge of the attack to place bets, with several Polymarket accounts reportedly withdrawing nearly $1 million just hours before the explosions in Tehran.
Related: Kalshi Founder Offers Update on Khamenei's Market Survey in Iran
Polymarket is faced with insider trading doubts
Polymarket has faced numerous allegations of insider trading after many traders placed unusually well-timed bets on major events. A small group of crypto wallets recently bet more than $1.2 million on an onchain investigation into DeFi platform Axiom, shortly before blockchain investigator ZachXBT published claims of insider trading linked to the project.
Separately, last month, another Polymarket account reportedly earned nearly $400,000 shortly before the news broke after making a large deposit to impeach Venezuelan President Nicolas Maduro.
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