Polymarket $21 billion valuation talks come with a push for a COO
Polymarket is reportedly raising money at more than double its last price, but its biggest backers want the founder to hire an operations chief as Kalshi pulls ahead in volume.
Polymarket $21 billion valuation talks are under way, according to reports on Wednesday, Oct. 21. The prediction market is in advanced talks to raise about $1 billion at roughly $21 billion post-money, Crypto Briefing reported, more than double the $9 billion it was valued at when Intercontinental Exchange invested in 2025.
What happened
The round is expected to be led by 1789 Capital, where Donald Trump Jr. is a partner, with Founders Fund also taking part, according to a Bloomberg report summarised by Benzinga on Yahoo Finance. 1789 Capital previously put about $200 million into the company, Crypto Briefing said. Nothing is final, and the figures describe what the round is expected to look like.
ICE, the parent of the New York Stock Exchange, has invested $1.6 billion so far: $1 billion in October 2025 and $600 million in March, out of plans for up to $2 billion. That has bought it an estimated 22% stake, Crypto Briefing reported, and ICE now distributes Polymarket's data to institutional clients.
The money comes with conditions. ICE and Founders Fund have both urged chief executive Shayne Coplan, 28, to hire a chief operating officer, and no one held the role as of mid-October. Bloomberg also reported that Coplan used company funds for private jet flights and apartment rent before the company had revenue, prompting Founders Fund to demand repayment and tighter controls before investing at a $1.2 billion valuation.
Why it matters
Polymarket said the flights were business-related, that Coplan disclosed the expenses himself and that the repayment was less than a software engineer's annual salary. "There were real growing pains, and I personally had to grow and change into what the company needed," Coplan told Bloomberg. The company hired Warren Jenson as chief financial officer in September, meeting one ICE condition, and has recruited executives from Goldman Sachs, DoorDash and Robinhood.
Alex Spiro, Elon Musk's lawyer, joined the board and is helping with operations, Bloomberg reported, and Crypto Briefing said the company has also hired a former FBI official. Kalshi controlled the majority of U.S. prediction market volume by mid-October, according to Crypto Briefing, which noted that Kalshi is a regulated player while Polymarket, built on blockchain rails, has a different path to U.S. customers.
The Polymarket $21 billion valuation would come as the company trails Kalshi. Bloomberg said Polymarket fell behind its rival in trading activity amid outages, regulatory scrutiny and a difficult U.S. launch, and that Kalshi is reportedly seeking a valuation about twice Polymarket's. Volume has surged for both, as our prediction markets record weekend report showed.
Investors are betting on growth that has not always paid off for users. Research we covered in Galaxy Polymarket retail accounts found retail accounts losing money, a reminder that platform value and trader returns are different things.
What's next
Watch for a signed term sheet, a COO appointment and the outcome of state lawsuits over sports contracts. Bloomberg's findings are summarised on Yahoo Finance.
Founders Fund reportedly structured its investment so Coplan cannot be fired without his consent, so governance changes will depend on him. Closing the Polymarket $21 billion valuation round would give him a bigger war chest for the fight with Kalshi.
This article is for information only and is not investment advice.