Polymarket, a cryptocurrency-based prediction market platform, is on the brink of securing a $200 million funding round that would elevate the firm’s valuation to $1 billion, as reported by Reuters.
Key Highlights:
Polymarket is nearing a $200 million funding round at a valuation of $1 billion, spearheaded by Founders Fund.
Despite facing bans and a federal investigation, the platform continues to expand and attract significant investment.
With over 21,000 active markets, Polymarket has established itself as a global destination for political and economic wagering.
The investment round is being led by Founders Fund, the venture capital firm co-founded by billionaire investor Peter Thiel.
If successful, this deal would grant Polymarket “unicorn” status, a significant achievement for a company that is currently unavailable to users in the United States.
Despite Challenges, Polymarket Attracts Substantial Investment
Despite being banned in the U.S. and undergoing scrutiny from federal authorities, including an FBI raid last November that led to the confiscation of electronics from founder Shayne Coplan, Polymarket has managed to garner both attention and funding.
This round of investment follows more than $100 million in previous funding, including a previously undisclosed $50 million round earlier in 2025.
Shortly before this announcement, Polymarket revealed a partnership with Elon Musk’s X platform, aimed at integrating its betting markets with insights from Grok, X’s AI chatbot.
This might be the most unexpected partnership of the year:
X just teamed up with Polymarket.
The platform that predicted Trump’s win while every poll showed 50–50.
But this isn’t just a partnership…
It’s the death of traditional media.
Here’s why it changes EVERYTHING: pic.twitter.com/gh2y2Ho601
— Ricardo (@Ric_RTP) June 7, 2025
Polymarket has gained notable attention for its swift growth, particularly during the 2024 U.S. presidential election.
In November, trading volume peaked at $2.5 billion, driven by speculation surrounding political and geopolitical developments.
Users can place bets on a variety of topics, including global conflicts, economic forecasts, legislative changes, and local political events.
Recent markets have focused on predictions regarding a potential U.S. recession, the likelihood of Israel taking military action against Iran, and the passage of the GENIUS Act, aimed at stablecoins, which is currently projected to have an 87% chance of becoming law.
Polymarket currently features more than 21,000 ongoing markets, with 1.2 million traders engaging in 20 million open positions and an active trading volume of $700 million.
According to data from Dune Analytics, the monthly trading volume for May was recorded at $1.1 billion, a decline from the record high in November yet still representing considerable activity.
While Polymarket’s expansion has been impressive, it confronts regulatory challenges beyond the U.S. with bans or limitations in countries like France, Singapore, Thailand, Taiwan, Poland, and Belgium, and faces scrutiny over potential market manipulation.
The company competes with other prediction markets such as Kalshi, which is backed by renowned firms like Sequoia Capital and Y Combinator.
CFTC Scrutinizes Super Bowl Contracts by Crypto.com and Kalshi
In March, the Commodity Futures Trading Commission (CFTC) announced it would review Super Bowl-related prediction contracts offered by Crypto.com and Kalshi Inc. to assess compliance with federal derivatives regulations.
Crypto.com launched its sports event trading platform last year, allowing users to make predictions on major events, including the Super Bowl.
However, the CFTC has raised concerns regarding the legal status of these contracts as derivatives.
Earlier in January, the agency’s commissioners voted to initiate a 90-day review of Super Bowl futures products, extending the inquiry beyond the game’s February 9 kickoff.
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