ICE-Backed Polymarket In Talks For New Funding At Up To $15B Valuation As Prediction Markets Soar: Report

• Polymarket is in talks with unnamed investors to raise up to $15 billion, weeks after it was valued at $8 billion.
• Interest in prediction markets, a space that also includes front-runner Kalshi, is soaring.
• That has put sports betting giants DraftKings and Flutter on alert, even as they explore their potential entry in the space. 

Prediction markets startup Polymarket is reportedly in talks to raise new funding at a valuation of up to $15 billion, Bloomberg reported Wednesday, citing unnamed sources. 

The figure is nearly double the $8 billion valuation at which Intercontinental Exchange Inc. — the owner of the New York Stock Exchange — committed $2 billion in the company earlier this month. In June, Polymarket was valued at $1 billion as it scooped $200 million in funding led by Peter Thiel’s Founders Fund.

Polymarket and its rival Kalshi are the leaders in the emerging space of prediction markets, where consumers trade contracts for, or simply bet on, the outcomes of real-world events such as sports tournaments, elections, or economic news.

The convergence of sports betting and financial markets appears to be drawing consumers. Trading volume on both Polymarket and Kalshi hit a new record last week, surpassing the previous peak reached during the U.S. presidential election last year. The return of college football in August and the NFL season in September prompted a significant uptick in volumes; separatel, Robinhood saw a surge in volumes after its partnership with Kalshi. 

Kalshi is reportedly in talks for a funding deal that could potentially value it at over $10 billion.

Polymarket was founded in 2020 by New York University computer science graduate Shayne Coplan, who became the world’s youngest self-made billionaire after his company’s fundraising this month.

The surging interest has put sports betting giants DraftKings and FanDuel operator Flutter Entertainment on alert, even as both explore their potential entry into the prediction market space.

On Tuesday, DraftKings announced that it had acquired prediction market startup Railbird for an undisclosed amount, a precursor to launching its own event-based contracts. The company’s shares gained over 3% the following day.

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Editor’s Note: Polymarket has a partnership with Stocktwits for jointly surveying retail investor data.<