Prediction Markets Lead Fintech’s First Funding Rise Since 2021

Venture funding for fintech firms rose in 2025 for the first time in four years, with prediction markets emerging as the sector’s biggest winners, riding a wave of enthusiasm around online gambling.

Globally, fintech companies raised $55.94 billion from venture investors this year, a 25% increase from the $44.75 billion raised in 2024, according to PitchBook data. Polymarket and Kalshi Inc. — which operate platforms for betting on the outcome of events, such as sports — accounted for $3.71 billion of that total, securing the largest US funding rounds of the year, and two of the top five globally, far ...