- Polymarket, a cryptocurrency-based prediction market platform, has raised $45 million in a Series B funding round.
- The round was led by Founders Fund, the venture capital firm founded by Peter Thiel, with notable support from Ethereum creator Vitalik Buterin.
- This funding brings Polymarket’s total raised to nearly $75 million, following a $25 million Series A and a $4 million seed round in 2020.
Polymarket, a crypto-based prediction market platform, secures $45 million in Series B funding led by Founders Fund, with support from Ethereum creator Vitalik Buterin, raising its total to nearly $75 million.
Polymarket Secures Major Funding
Polymarket, a cryptocurrency-based prediction market platform, has announced that it has raised $45 million in a Series B funding round. The round was led by Founders Fund, the venture capital firm founded by Peter Thiel. Other notable investors included Ethereum creator Vitalik Buterin and firms such as 1confirmation, ParaFi, and Dragonfly Capital. This funding round follows a $25 million Series A and a $4 million seed round in 2020, bringing Polymarket’s total raised to nearly $75 million.
Support from High-Profile Investors
Polymarket has received investments from a number of high-profile investors. However, it is currently facing increased interest from the U.S. regulator Commodity Futures Trading Commission (CFTC). Shayne Coplan, founder and CEO of Polymarket, stated that the investment round was managed by Founders Fund. The platform has become very active recently, especially as the U.S. presidential elections approach. Polymarket will use the fund to further develop and expand the platform. However, the actual amount for Polymarket in this deal remains a secret.
How Does Polymarket Function?
Polymarket operates by allowing users to bet on the outcomes of real-world events, from political elections to changes in regulations affecting cryptocurrencies. For instance, one of the most popular contracts on Polymarket currently asks whether the SEC will approve a spot exchange-traded fund for Ethereum by the end of the month. Market predictions price this possibility at 45%.
Expansion and Operational Strategy
Polymarket has hired Richard Jaycobs as the leader of market expansion. With this move, it aims to cope with regulations and expand the market space. Jaycobs is highly experienced in traditional finance (tradfi) firms. He previously served as the president of Cantor Exchange and CEO of The Clearing Corporation. This action by Polymarket will strengthen the company’s operational framework. It is also a sign that it will expand its user base beyond the U.S. market. The Polymarket platform facilitated over $170 million in bets during the U.S. presidential elections. This proves the platform’s ability not only to activate a large number of users but also to produce more reliable predictions and insights about public opinion compared to traditional polling methods.
Conclusion
With the successful completion of its Series B funding round, Polymarket is poised for further growth and expansion. The platform’s ability to attract high-profile investors and facilitate significant betting activity demonstrates its potential in the crypto market. As it continues to evolve and expand, Polymarket is likely to become an increasingly influential player in the prediction market space.
