Founders Fund and Vitalik Buterin Lead $70M Fundraiser for Political Betting Platform Polymarket
Summary:
Peter Thiel's Founders Fund and Ethereum co-founder Vitalik Buterin have led a $70 million fundraising drive for Polymarket, a platform enabling betting on political events. Despite proposed bans on political betting, Polymarket has seen increased interest as the 2024 U.S. presidential elections approach. The recent $45 million Series B funding round led by Founders Fund marks its first investment into event-betting contracts. Previously fined by the CFTC, Polymarket has appointed ex-CFTC head J. Christopher Giancarlo as chairman of its advisory board in a bid to improve regulatory relationships.
The venture capital company of Peter Thiel, Founders Fund, along with Ethereum's co-founder, Vitalik Buterin, have driven a successful $70 million fundraising operation for Polymarket, a platform that allows bets on political events. Bloomberg reports that Polymarket managed to secure $70 million through two rounds of funding, given the rising interest in betting on the 2024 U.S. presidential elections. The recent Series B funding round for Polymarket amassed $45 million and was led by Founders Fund. Despite the Commodity Futures Trading Commission (CFTC) proposing bans on political wagering, the crypto-based prediction market is prospering. Joey Krug, a partner at Founders Fund, disputed the proposed ban stating that aversion in the U.S. towards prediction markets largely stems from outdated views on gambling. Polymarket's current focus on foreign markets bodes well in the short- and middle-term, however, it would ultimately benefit from American participation. Krug added that this investment is Founder Fund's first foray into event-betting contracts. Polymarket, previously penalized by the CFTC, has conceded to downscale its US operations as part of a settlement. Since then, the platform appointed ex-CFTC chief, J. Christopher Giancarlo, as chairman of its advisory board to improve its relations with regulators. As the U.S. presidential election inches closer, Polymarket has seen a significant increase in betting volume. Users are enabled to buy shares using Circle USD (USDC) without the need to hold customer funds. At the helm of Polymarket is 25-year-old Shayne Coplan, under whose lead the platform has seen an upsurge in electoral betting, with over $170 million in bets placed on the forthcoming U.S. elections as per the site's figures. The expectation of immediate dividends from the U.S. market and its research is low, yet the firm possesses a strong belief in developing markets concerning public queries and opinions. Despite its recent fundraising success, the platform is not yet generating revenue and it has also seen its valuation decrease due to regulatory troubles, having once stood around $1 billion.
Published At
5/14/2024 5:21:10 PM
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