Prediction market Polymarket set for $1B round led by 1789 at $21B valuation: Bloomberg

Venture firm 1789 Capital is leading a new $1 billion funding round for prediction-markets platform Polymarket that will value the company at $21 billion post-money, Bloomberg reported, citing people familiar with the matter.

1789 Capital is expected to contribute around $300 million to the round, according to the report. Bloomberg had earlier reported this month that Polymarket was in early talks to raise capital at a valuation above $20 billion. A company spokesperson declined to comment.

The new capital comes as Polymarket works to bring more institutional users onto its platform and pursues regulatory approval to offer margin trading in the US, a feature aimed at attracting more sophisticated investors. The platform allows users to trade on outcomes across categories including sports and elections.

Polymarket was last valued at $15 billion in April, when D.E. Shaw and G Squared joined as new investors, Bloomberg reported. Intercontinental Exchange Inc., the parent of the New York Stock Exchange, also completed a $1.6 billion investment in Polymarket earlier this year.

The deal underscores the rapid growth of prediction markets, even as the sector faces unresolved regulatory questions. While platforms argue that US oversight should fall to federal derivatives regulators, several states have asserted their own authority; a recent federal appeals court ruling favored state efforts and increased expectations that prediction-market regulation could ultimately reach the US Supreme Court.

Despite the new round, Polymarket has trailed its main rival Kalshi this year amid operational and legal issues, per Bloomberg. Kalshi raised funding in May at a $22 billion valuation and is reportedly in talks to increase that figure to $40 billion.

Donald Trump Jr., a partner at 1789 Capital, is an adviser to both Polymarket and Kalshi, according to the report.