Polymarket nears $200 million funding round, eyes $1 billion valuation

Blockchain-based prediction market Polymarket is in the final stages of raising $200 million in fresh funding, a deal expected to push the company’s valuation above $1 billion, according to reports from Reuters and Bloomberg.

Peter Thiel’s Founders Fund is reportedly leading the round, which includes $50 million already secured in undisclosed earlier tranches. The raise marks a significant milestone for the platform, which has drawn growing attention from institutional investors and users amid heightened interest in real-world event trading.

Founded in 2020, Polymarket allows traders to bet on the outcome of global events using cryptocurrency, with markets ranging from geopolitical developments to corporate milestones and elections.

The New York-based platform surged in popularity during the 2024 U.S. presidential election, with more than $3.3 billion reportedly wagered. Its odds often diverged from traditional polling, drawing interest from media and analysts.

Although restricted from serving U.S. users under Commodity Futures Trading Commission (CFTC) rules, Polymarket’s global reach continues to expand. It logged 15.9 million visits in May, outpacing traditional betting platforms FanDuel and DraftKings, according to SimilarWeb. Data from Dune Analytics pegged its prediction accuracy at 94%.

High-stakes markets include $4 million on the potential destruction of Iran’s Fordow nuclear facility, $3 million tied to the possible departure of Supreme Leader Ali Khamenei, and $8 million on a forecasted U.S. recession in 2025. Another $5 million market speculates on whether Tesla will unveil a Robotaxi by mid-year.

Goldman Sachs is among financial institutions referencing Polymarket data to assess geopolitical risk, including scenarios involving the Strait of Hormuz, according to sources. The platform's real-time market pricing has become a tool for synthesizing public sentiment into strategic insights.

Polymarket has also made moves toward regulatory alignment. In 2022, it appointed former CFTC Chairman J. Christopher Giancarlo to its advisory board, signaling its long-term interest in expanding operations within U.S. jurisdiction. The company previously settled charges with the CFTC related to unregistered binary options trading.

The latest round follows earlier funding in May 2024, when Polymarket raised $25 million in a Series A led by General Catalyst, and $45 million in a Series B led by Founders Fund with participation from Ethereum co-founder Vitalik Buterin. Its seed round in 2020 raised $4 million.

If completed as expected, the new funding would elevate Polymarket to unicorn status, bolstering its position as a leading force in decentralized forecasting.