Prediction market platforms Calci and Polymarket are considering a funding round that could value the companies close to $20 billion, according to a report in the Wall Street Journal.
The companies recently held initial discussions with potential investors about a new funding round, the people said. The final valuation of each platform was about half that amount at the end of last year.
The talks are preliminary and may not result in a deal, and there is no guarantee the companies will be able to secure the valuations given the increased scrutiny surrounding prediction markets.
Kalsi already operates in the United States, offering a wide range of themed markets from sports and politics to economic events and pop culture. In December, the company raised $1 billion from investors including Paradigm and Sequoia Capital, giving the company a valuation of about $11 billion.
Founded in 2018 by Tarek Mansour and Luana López Lara, Karsi received approval from the Commodity Futures Trading Commission in 2020, becoming the first regulated exchange for event-based markets.
The company recently surpassed $1 billion in annual sales, with some estimates putting the figure closer to $1.5 billion.
Polymarket, founded in 2020 by Shayne Coplan, currently restricts users in the United States, but plans to launch a regulated domestic version of the platform later this year.
The platform was last valued at about $9 billion in October after New York Stock Exchange owner Intercontinental Exchange agreed to invest up to $2 billion.
Both companies have recently faced increased scrutiny over their markets related to geopolitical events, including a possible U.S. attack on Iran and bets on the future of Iran’s supreme leader.
Lawmakers are also beginning to call for stronger oversight. U.S. Representatives Blake Moore and Saldo Carvajal have introduced a bill aimed at restricting prediction markets from offering contracts related to topics such as war and sports.
At the same time, both companies have aggressively acquired new users through social media advertising and campus outreach programs targeting university communities.
Disclosure: This article was edited by Estefano Gómez. Please see our Editorial Policy for more information on how we create and review content.