Polymarket Reportedly Seeks $1 Billion Round at $21 Billion Valuation

New round would extend recent valuation gains

The reported fundraising would mark another step up from Polymarket’s earlier valuation this year. In April, the company was valued at $15 billion in a funding round that brought in new investors including global investment firm D.E. Shaw and venture capital firm G Squared.

Polymarket had already been reported to be in discussions about a fresh raise at a valuation above $20 billion. A $21 billion post-money figure would place the company noticeably above that April level if the deal is completed on the reported terms.

The company has also attracted backing from established market infrastructure players. Intercontinental Exchange, the parent company of the New York Stock Exchange, completed a $1.6 billion investment in Polymarket this year.

Institutional expansion is part of the backdrop

The fundraising effort comes as Polymarket works to broaden its institutional investor base. One part of that push is its effort to obtain regulatory approval to offer margin trading in the United States, a step aimed at attracting more professional investors.

Bloomberg reported that 1789 Capital is taking the lead in the round. Donald Trump Jr., a partner at the firm, serves as an adviser to both Polymarket and rival platform Kalshi.

Prediction-market competitors are also drawing higher valuations

The latest reported terms for Polymarket fit into a broader pattern of rapidly rising valuations across the prediction-market sector. Rival Kalshi was valued at $22 billion in a funding round in May.

Kalshi has also recently been discussing a new capital raise that would increase its valuation to $40 billion. Those discussions, together with Polymarket’s reported plans, point to continued investor interest in companies operating in this corner of digital and event-based markets.

Regulatory fight in the US remains unresolved

Even as capital flows into the sector, prediction markets in the US continue to face regulatory uncertainty. State governments argue that they have authority to oversee these markets, while platforms maintain that prediction contracts fall under the jurisdiction of the federal derivatives regulator.

That disagreement has already produced a significant court outcome. A recent ruling by a US federal appeals court favored state governments that have claimed oversight authority over prediction markets.

The jurisdictional dispute is still not settled and could eventually reach the US Supreme Court. For Polymarket, the next confirmed step is whether the reported $1 billion round is completed and whether its effort to secure US approval for margin trading advances.