Pre-IPO Betting Boom Hits Prediction Markets
The Information
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Generative AI
Most everyday investors can’t buy shares of hot private companies like SpaceX and OpenAI before they go public. With potential mega-IPOs looming this year, prediction markets like Polymarket and Kalshi are turning that hype into tradable bets. Users are flocking to yes-or-no bets on milestones like valuations and IPO timelines, betting with contracts that trade in cents and pay out $1 if the buyer is right. That’s helping prediction markets tap into excitement around the IPOs and reduce their reliance on sports betting, which represents much of their business.