Polymarket Raises $45 Million in Series B Funding
Polymarket, the cryptocurrency-based prediction market platform, has secured $45 million in a Series B funding round led by billionaire Peter Thiel’s Founders Fund. Ethereum creator Vitalik Buterin, 1confirmation, ParaFi, and Dragonfly Capital also participated in the round. The valuation of the company post-transaction was not disclosed.
This round follows a previously undisclosed $25 million Series A led by General Catalyst. Combined with a $4 million seed round in 2020, Polymarket has raised over $70 million. Additionally, the company has appointed Richard Jaycobs as Head of Market Expansion to drive its next phase of growth. Jaycobs brings extensive experience from traditional finance firms, having served as President of the Cantor Exchange and CEO of The Clearing Corporation.
Polymarket is a leading player in the crypto prediction markets, where traders bet on real-world events’ outcomes within a specified timeframe. The platform covers a wide range of events, from sporting matches to regulatory decisions. Advocates argue that prediction markets offer more accurate reads on public sentiment and reliable forecasts compared to polls and pundits.
Despite its success, Polymarket faces a significant hurdle: it is barred from operating in the United States following a 2022 settlement with the Commodity Futures Trading Commission (CFTC). This restriction has allowed competitors like Kalshi, the sole CFTC-regulated prediction market platform, to gain ground. However, recent regulatory proposals from the CFTC, such as a ban on election-related bets, could impact competitors while leaving Polymarket unaffected.
Despite regulatory challenges, Polymarket continues to attract significant interest, with over $202 million wagered on the platform this year alone, including over $125 million on the presidential election.
