Prediction markets are experiencing a surge in private equity, driven by rising platform popularity.

A person familiar with the matter confirmed that prediction market platform Polymarket is in discussions for a new funding round, with a post-money valuation expected to exceed $20 billion. In late June, the company revealed to sources that its annualized revenue had already surpassed $1 billion.

On November 4, 2025, a Polymarket billboard in New York's Times Square displayed odds for the New York City mayoral election. Voters were set to choose a new mayor among candidates including a young socialist, a seasoned former governor, and a radio host in a red beret.

A source familiar with the situation confirmed that Polymarket is negotiating a new funding round, with a corporate valuation exceeding $20 billion. The talks began after the company's US-compliant exchange launched in May, and in late June, Polymarket disclosed that its annualized revenue was significantly above $1 billion. Bloomberg first reported the funding discussions and valuation expectations on Tuesday; Polymarket declined to comment when approached.

The source, who requested anonymity due to ongoing negotiations, also confirmed that the company completed a funding round in April, with a post-money valuation of $15 billion. Tech media outlet The Information first reported that round in April, though Polymarket did not confirm its completion at the time. Bloomberg reported that in March, Intercontinental Exchange, the parent company of the New York Stock Exchange, announced a $600 million direct cash investment in the platform, which was included in the April funding round.

Several prediction market platforms, while not yet publicly traded, have seen rapid business growth. Polymarket's main competitor, Kalshi, announced a funding round in May at a valuation of $22 billion. In June, the Financial Times reported that Kalshi plans to seek new funding in the third quarter, targeting a $40 billion valuation. If Polymarket's current round is successful, it will be its first since the US-compliant exchange launched. The platform began beta testing in December of last year with a reservation-based queuing model.

Dune Analytics data shows that Polymarket's US exchange sees daily nominal trading volume exceeding $100 million, up from approximately $75 million at the end of May. The international platform, serving overseas users, averages over $150 million in daily nominal trading volume.