Prediction Market’s $1B Valuation Rides on $200M Funding Round

Polymarket, the embattled cryptocurrency prediction market platform, is nearing coveted “unicorn” status through a $200 million funding round that would push its valuation to $1 billion.

Citing unnamed sources close to the deal, Reuters and Bloomberg reported Tuesday that billionaire investor Peter Thiel’s Founders Fund is leading the nine-figure capital infusion. This despite Polymarket still being banned for U.S. bettors.

The platform exploded onto the scene in 2024 when election betting volume exceeded $2.5 billion in November alone. But federal authorities remain skeptical of its unregulated approach. The FBI raided founder Shayne Coplan’s home last fall, alleging illegal access may have been granted to American customers.

Polymarket has already raised upwards of $100 million to date. A previous $50 million round last year failed to capture headlines. But the platform’s recent partnership with Elon Musk’s fledgling social network X thrust Polymarket back under the media spotlight in early June.

Under the agreement, Polymarket markets will integrate with analysis from X’s artificial intelligence chatbot known as Grok.

Despite being blocked in the U.S. and several other countries, Polymarket continues expanding its global user base. The platform now boasts 1.2 million traders, 21,000 event markets, 20 million positions and $700 million in monthly volume.

While down significantly from its November peak, May volume still exceeded $1.1 billion according to analytics site Dune.

Polymarket has weathered criticism over allegations of market manipulation and objections to betting on sensitive geopolitical events like a potential Russian nuclear strike.

The company also faces increasing competition from Kalshi, a rival prediction market backed by Silicon Valley heavyweights Y Combinator and Sequoia.