Polymarket Secures $200M Funding Round in $1B Valuation Push Despite US Ban
Federal agency action and US citizen inaccessibility have not halted major growth for Polymarket, a leading blockchain-based prediction market platform. The company is reported to be finalizing a $200 million Series B funding round, according to Bloomberg and Reuters.
Founders Fund Leads Funding Round
Reports cite sources familiar with the matter indicating that the round will be led by Peter Thiel’s venture capital fund, Founders Fund. Besides Founders Fund, undisclosed other investors are also partaking, suggesting confidence despite, or potentially stemming from, the platform’s recent challenges.
The proposed $1 billion valuation signals “unicorn” status, highlighting the platform’s significant growth measured in trading volume, even as it points to the inherent contrasts with its current limitations.
Market Access Blockades and Legal Scrutiny
The funding momentum comes shortly after a notable event: federal agents executed a search warrant against Polymarket’s founder, Shayne Coplan, citing concerns that ordinary Americans could circumvent US financial regulations by using the platform.
In November, authorities sought information suggesting the platform provided direct access to citizens currently barred from participating. This investigation reflects broader US regulatory sensitivities around such platforms.
The US ban is not an isolated incident. Polymarket has also faced access restrictions in France, Singapore, Thailand, Taiwan, and Belgium, further complicating its global reach. Furthermore, the company endures scrutiny regarding operational fairness, particularly concerning potential prediction outcome manipulation.
Recent Growth and Major Milestones
Despite national barriers, Polymarket experienced explosive trading growth in 2024. Its volume during the US Presidential election period surpassed $2.5 billion, attracting substantial user and capital attention.
The platform allows betting on diverse events, such as geopolitics (e.g., Iran strike likelihood), economic indicators (e.g., Fed policy shifts), regulatory outcomes (GENIUS Act stablecoin bill), and local politics (NYC Mayor). Notably, Polymarket assigns an 89% probability of the GENIUS Act becoming law this year.
In a significant recent partnership, Polymarket announced collaboration with X (formerly Twitter) in June, leveraging Elon Musk’s platform and Grok AI capabilities to potentially enhance prediction analysis.
Monthly volume dipped 56% from a peak $2.5 billion in November 2024, but according to internal analytics, Polymarket boasts approximately 1.2 million traders, 21,000 active markets, and 20 million open positions.
— Polymarket
Competitive Landscape
While navigating regulatory hurdles and accusations, Polymarket competes against other specialized prediction market venues, including Kalshi, another notable platform backed by investment firms like Sequoia Capital.
