Polymarket Seeks $1 Billion in New Funding at $21 Billion Valuation

Polymarket, a blockchain-based prediction market platform, is seeking $1 billion in new funding in a deal that would value the company at $21 billion.

Bloomberg reported on August 31 that venture capital firm 1789 Capital is leading the round. The fundraising would value Polymarket at $21 billion on a post-money basis.

1789 Capital plans to invest about $300 million of the total. Polymarket had previously been reported to be discussing a new fundraising round targeting a valuation of more than $20 billion.

Polymarket was valued at $15 billion in its April funding round. Global investment firm D.E. Shaw and venture capital firm G Squared joined as new investors at the time. Intercontinental Exchange, the parent company of the New York Stock Exchange, also completed a $1.6 billion investment in Polymarket this year.

The fundraising comes as Polymarket pushes to expand its institutional investor base. The company is seeking regulatory approval to offer margin trading in the US to attract more professional investors. Polymarket declined to comment on the investment.

Valuations across the prediction-market industry are rising rapidly. Rival Kalshi was valued at $22 billion in a funding round in May and has recently been discussing a new capital raise that would lift its valuation to $40 billion.

Regulatory uncertainty around prediction markets in the US persists. State governments argue they have authority to oversee prediction markets, while platforms maintain that prediction contracts fall under the jurisdiction of the federal derivatives regulator.

A recent ruling by a US federal appeals court favored state governments that have asserted oversight authority over prediction markets. The dispute over who regulates the sector could eventually reach the US Supreme Court.

Donald Trump Jr., a partner at 1789 Capital, serves as an adviser to both Polymarket and Kalshi.