Polymarket, a decentralized prediction market platform, is on the verge of closing a $200 million fundraising round, valuing the company at an impressive one billion dollars, according to The Information. This operation signifies a renewed interest from venture capitalists in predictive markets, which have long been on the sidelines of the Web3.
Polymarket Raises $200 Million, Surpasses Billion Dollar Valuation
After disappearing from the radar, Polymarket has made a resounding comeback. This platform for decentralized betting on real-world events is about to finalize a $200 million fundraising round, pushing its valuation to over a billion dollars. This move marks a significant return in VC interest for predictive markets, which were previously overlooked in the Web3.
Return to Grace for Predictive Markets
This massive deal comes a year after the 2024 US presidential election, which had caused unprecedented frenzy on Polymarket. Over $3 billion was wagered on the outcome of the Trump-Harris showdown mere hours before the polls opened.
Volume Rises Once Again
Following this surge, activity naturally subsided. However, starting in March, the numbers have been on the rise. Three consecutive months of growth in spot trading volume: +21% in April, +17% in May. In May, Polymarket once again surpassed the symbolic one billion dollars in monthly volume.
These are promising signs as the platform now accumulates nearly $14 billion in volume since its launch. This is despite a major setback: a growing portion of this activity takes place outside the United States.
America, a Minefield
In the United States, Polymarket had to withdraw from the market after being fined by the CFTC. A $1.4 million penalty halted its domestic operations in early 2022, forcing the platform to pivot towards more permissive jurisdictions.
Despite this retreat, investor appetite remains strong. The new fundraising round would complement the $45 million raised in the May 2024 Series B and the $25 million quietly raised in a Series A led by General Catalyst. These figures would position Polymarket far ahead of its main competitor, Kalshi, which has only raised $30 million and some short-term loans.
Token Objective and Global Expansion
Polymarket is not done yet. According to sources close to the matter, the company was already considering a native token last year to allow users to resolve their bets directly on the platform. Nothing official yet, but in the Web3 world, this often follows logically.
In a world saturated with information and opinions, Polymarket offers something different: real bets on real events. Presidential elections, Bitcoin prices, sporting or geopolitical events… each prediction becomes a position in the markets.
With a ten-figure valuation, these markets could very well be the next big thing to capture the attention of the mainstream crypto audience.
