Polymarket raises $70M from Vitalik Buterin, Founders Fund

Peter Thiel's venture capital firm, Founders Fund, and Ethereum founder Vitalik Buterin led a $70 million fundraising effort for Polymarket, a platform that enables betting on political events.

According to Bloomberg, Polymarket has successfully raised $70 million in two funding rounds as betting on the 2024 US presidential elections continues to intensify. Polymarket's latest Series B funding round was led by Founders Fund and raised $45 million.

Despite restrictions on political race betting by the Commodity Futures Trading Commission (CFTC), the crypto-based prediction market continues to grow. In response to the proposed ban, Founders Fund partner Joey Krug said:

There are many reasons why some people in the United States do not like the prediction markets, starting with a pretty pure notion of betting. The short to medium term is good for Polymarket because they are targeting non-US markets. In the long run, it would be good if Americans could also participate in this market.

According to Krug, the investment by Founders Fund marks the first event betting terms.

Previously, Polymarket was fined by the CFTC and agreed to reduce its services in the United States as part of the settlement. Since then, the platform has hired former CFTC chief J.

Polymarket has seen a significant increase in betting volume, especially as the US presidential election approaches. Known for facilitating betting on multiple events, the platform allows users to buy stocks with USD Coin (USDC) without the need to protect client funds.

Polymarket, led by 25-year-old founder Shane Coplan, has registered more than $170 million worth of bets on the upcoming US election, according to the platform's website. Coplan said:

“When we think about the US market, when we invest in it, when we research it, we know that it's not something that pays an immediate profit. We have a strong belief that eventually, people will be impressed and comment on the market.

Despite recent successful funding rounds and the platform not currently generating revenue, regulatory oversights have reduced Polymarket's valuation, previously around $1 billion.