TLDR Polymarket and Kalshi are each in early talks to raise new funding at valuations of around $20 billion Both were valued at roughly half that in late 2024 — Kalshi at $11B, Polymarket at $9B January 2026 saw $26.7 billion in prediction market trading volume across seven platforms State regulators are challenging both companies over whether they need state gambling licenses The WSJ reports talks are preliminary and could fall through or close at lower figures
Prediction markets Polymarket and Kalshi have been talking to potential investors about new funding rounds, according to a Wall Street Journal report published this weekend. Both companies are targeting valuations of around $20 billion each.
The WSJ cited people familiar with the matter. Reporters Kate Clark and Kevin T. Dugan noted the talks are still early and could collapse or land at lower numbers.
Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara. It raised $1 billion in December 2025 at an $11 billion valuation. Investors in that round included Paradigm and Sequoia Capital.
Polymarket was founded by Shayne Coplan in 2020. In October 2025, Intercontinental Exchange, the parent company of the New York Stock Exchange, agreed to invest up to $2 billion, putting Polymarket’s valuation at around $9 billion at the time.
Both companies have grown quickly over the past year. Prediction markets have expanded beyond elections into sports betting, including the NFL and college football, as well as global events.
Monthly trading volume across prediction market platforms hit $26.7 billion in January 2026, according to data from Dune Analytics and user @datadashboards. That figure covers seven separate marketplaces.
In the final week of 2025 alone, weekly notional volume cleared $5.3 billion.
Legal Battles With State Regulators
Both Polymarket and Kalshi are currently in disputes with