Peter Thiel’s venture capital firm, Founders Fund, and Vitalik Buterin, co-founder of Ethereum, have taken the lead in raising $70 million for Polymarket, a platform that allows betting on political events.
According to Bloomberg, Polymarket has successfully secured $70 million in funding across two rounds, as interest in betting on the 2024 United States presidential elections grows. Founders Fund spearheaded the latest funding round, Series B, which raised $45 million.
Despite the Commodity Futures Trading Commission (CFTC) proposing bans on political contest betting, the crypto-based prediction market continues to thrive. In response to the proposed ban, Joey Krug, partner at Founders Fund, stated:
“The investment by Founders Fund marks our first venture into event-betting contracts.”
Polymarket has faced regulatory issues in the past, resulting in fines by the CFTC and an agreement to limit its services in the United States. To repair its relationship with regulators, the platform has appointed J. Christopher Giancarlo, former head of the CFTC, as chairman of its advisory board.
As the U.S. presidential elections approach, Polymarket has experienced a significant increase in betting volume. The platform, known for facilitating bets on various events, allows users to purchase shares using USD Coin (USDC) without needing to hold customer funds.
Under the leadership of founder Shayne Coplan, who is only 25 years old, Polymarket has witnessed a surge in electoral betting. According to the platform’s website, over $170 million in wagers have been placed on the upcoming U.S. elections. Coplan stated:
“Despite the recent successful funding rounds and the platform’s lack of current revenue, regulatory setbacks have impacted Polymarket’s current valuation, previously estimated at around $1 billion.”