Polymarket in talks for fundraising round at more than $20 billion valuation

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Prediction market platform Polymarket is in talks for a fundraising round that would value the company at north of $20 billion, a person familiar with the matter confirmed to CNBC.

The talks and valuation come after the company told CNBC in late June that its annualized revenue was well above $1 billion, following the launch of its regulated U.S. exchange in May.

Bloomberg first reported on Tuesday about the new talks and valuation. Polymarket declined a request to comment by CNBC.

The person familiar with the situation — who asked not to be named to discuss the ongoing fundraising talks — also confirmed that the company previously closed a funding round in April that valued Polymarket at $15 billion.

The Information first reported about the funding round that same month, but the company did not confirm the round's closure at the time. That round included an additional $600 million direct cash investment by New York Stock Exchange owner Intercontinental Exchange announced in March, Bloomberg reported.

Prediction market platforms are continuing to experience huge growth while staying private. In May, Polymarket's chief rival, Kalshi, announced the closure of a funding round that valued the company at $22 billion. The Financial Times reported in June that Kalshi was in talks to raise new funds in the third quarter and would seek a $40 billion valuation.

If a new funding round for Polymarket closes, it would mark the first since the U.S. exchange's official launch, though the platform debuted with a waitlist in December. The U.S. exchange is doing north of $100 million in notional volume per day — up from around $75 million at the end of May — while the company's international platform is recording daily notional volume above $150 million, according to data from Dune Analytics.

— CNBC's Ananya Chetia contributed reporting

Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.