Polymarket is understood to be seeking US$1 billion in financing with a valuation of US$20 billion

Polymarket is reported to be in a new round of financing negotiations with a valuation of more than US$20 billion.

It is reported that Polymarket is in preliminary negotiations with potential investors and plans to raise approximately US$1 billion at a valuation of more than US$20 billion.

Core Points

Polymarket is reported to be discussing a new round of US$1 billion financing, valued at more than US$20 billion. A round of financing in April valued Polymarket at $15 billion, with investors including D.E. Shaw and G Squared. ICE had previously invested US$1 billion in Polymarket and confirmed an additional US$600 million in March. In July, the total market trading volume is forecast to reach US$50.6 billion, of which the Kalshi platform trading volume is US$37.7 billion. Polymarket's U.S. operations operate through CFTC designated markets QCX and are currently facing state challenges to federal regulatory authority.

Relevant reports quoted sources familiar with the matter as saying that the negotiations are still in a private stage. The company has not announced any deals and a Polymarket spokesperson declined to comment. Therefore, the financing size, valuation and investor list should be regarded as "preliminary" rather than completed financing.

If this round of financing is successful, Polymarket's valuation will be close to that of its main competitor Kalshi, which received a valuation of US$22 billion in May. It will also continue the rapid upward trend of private valuations as the industry expands from electoral contracts to include sports, economics, cryptocurrencies and other real-world events.

Financing negotiations have not yet been confirmed

The reported deals are still in their early stages and no terms sheets, delivery dates or final investor lists have been released. Private financing negotiations may change before they are completed, including the amount raised and the valuation ultimately accepted by investors.

Comparisons with Polymarket's October 2025 valuation also require caution. Reports mentioned a valuation of about $9 billion, but ICE's official announcement stated that its planned investment reflected a valuation of about $8 billion before new capital. These figures may be based on different valuation bases and are not necessarily contradictory.

The April round also combined reporting and confirmation. There are reports that Polymarket has raised about $1 billion at a valuation of $15 billion, D.E. Shaw and G Squared joined investors. Intercontinental Exchange separately confirmed an additional US$600 million investment on March 27 as part of Polymarket's equity financing. The owner of the New York Stock Exchange had previously invested $1 billion in October 2025, but did not disclose the valuation of the March investment.

A valuation of more than $20 billion would be at least 33% higher than the valuation reported in April and more than double the reported valuation of Polymarket in October.

U.S. business expansion supports valuation

Polymarket has returned to the U.S. market to provide a regulated growth channel beyond its international platform, which uses cryptocurrency for settlement. According to official registration information from the U.S. Commodity Futures Trading Commission, QCX LLC (operating under the name Polymarket US) is listed as a designated contract market with a registration date of July 9, 2025. The exchange has since submitted rule revisions covering fees, liquidity planning, monitoring and trading procedures.

There are reports that Polymarket opened a US exchange after raising funds in April. At the same time, the company's U.S. access page shows that its applications are gradually opening up to users from waiting lists, indicating that access may still be expanding in stages rather than fully.

Revenue growth is another basis for valuation, although these numbers are a non-public company indicator. According to sources, Polymarket's annualized revenue has more than tripled since April to more than $1.2 billion. Another report said that the platform's annualized revenue has exceeded US$1 billion. Annualized data is based on estimates of recent performance and is not audited revenue for the full fiscal year.

Transaction data also shows that platform activity in the United States is increasing. Data showed that the total transaction volume of Polymarket, Polymarket US and Kalshi reached a record $50.6 billion in July. Kalshi led the lead with US$37.7 billion, with Polymarket US trading volume rising 54% to US$5 billion, while Polymarket international platforms fell 26% to US$7.9 billion. Data shows that the U.S. market is growing faster, but Polymarket's overall business has not expanded evenly.

Kalshi's lead constitutes a high threshold

Kalshi officially announced on May 7 that it had completed a US$1 billion Series F financing with a valuation of US$22 billion. Coatue led the investment and Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest participated. The company said institutional trading volume increased 800% in six months, with annualized trading volume increasing from $52 billion to $178 billion. These transaction data provided to companies should not be confused with revenue.

It is reported that Kalshi claimed to have more than 90% of the U.S. forecast market when announcing the financing. Independent July data also showed that Kalshi's trading volume was nearly three times that of Polymarket's international and U.S. platforms combined.

Despite Kalshi's larger trading volume, Polymarket's reported target valuation will narrow the gap. Potential investors may value Polymarket's international reach, cryptocurrency settlement infrastructure, brand awareness and relationship with the Intercontinental Exchange. Trading volume alone does not determine the value of a private company. Fees, customer retention, compliance costs, market composition, and activities following major sporting or political events can all affect revenue quality. Open interest fell after the World Cup in July, despite record trading volume that month.

Regulatory disputes may affect financing

Polymarket US holds a federal designation, but multiple states consider sports event contracts to be gambling and are still subject to state laws. The Nevada Gaming Control Commission filed a civil lawsuit against Polymarket and QCX in January, asking a state court to bar the companies from providing what they call unlicensed gambling in the state. Previous reports have shown that Polymarket and Kalshi are involved in a broader controversy over whether the Commodity Exchange Act gives the CFTC exclusive supervision over federally registered event contract platforms. North Carolina takes a different path, with a law signed in July recognizing the CFTC's regulated forecast market and imposing a 6% tax on its transaction fee income starting in 2027.

These disputes will not prevent Polymarket from discussing financing, but could affect market access, legal costs and investors 'assessment of the company's U.S. growth plans.