Polymarket seeking funding round that could surge its valuation to $10B
Prediction market Polymarket is pursuing new funding that could boost its valuation to $10 billion, as Business Insider reported on Sept. 12.
Two people with knowledge of the matter said the valuation discussions represent at least a threefold increase from the $1 billion Polymarket achieved in a funding round that closed this summer.
According to one source, at least one investor offered a term sheet valuing the company at $10 billion. A Polymarket spokesperson declined to comment on the funding talks.
Strategic developments
The reported valuation surge follows a series of strategic developments positioning Polymarket for a US comeback.
The Commodity Futures Trading Commission granted regulatory approval for the platform to resume US operations through a no-action letter issued Sept. 3 to QCX LLC, Polymarket’s regulatory partner, acquired for $112 million in July.
The regulatory greenlight enables Polymarket to operate event contracts while maintaining compliance with federal derivatives regulations. It also marks a return after the platform ceased US operations in 2022 following a $1.4 million CFTC settlement over unregistered derivatives trading.
Additionally, Donald Trump Jr. joined Polymarket’s advisory board in August as his venture capital firm 1789 Capital made a strategic investment in the platform.
The partnership adds political expertise as Polymarket prepares for US market entry. Trump Jr. recently praised the platform for cutting through “media spin and so-called expert opinion.”
Polymarket CEO Shayne Coplan characterized the 1789 Capital partnership as reinforcing the company’s role as a trusted information source, while the firm’s founder, Omeed Malik, praised Polymarket’s intersection of financial innovation and free expression.
Slump in user growth
Polymarket operates as a prediction market where users place bets on outcomes ranging from political elections to cultural events, generating market-driven predictions.
Data from a Dune dashboard by Varrock founder Richard Chen shows that Polymarket crossed $8.5 billion in year-to-date trading volume as of Sept. 12, surpassing last year’s total volume.
The trading volume increase occurs despite a slump in active and new users. Polymarket’s monthly active traders peaked in January at 454,664, gradually falling to reach August’s 226,442 after a 20% fall from July.
Meanwhile, new users plunged 33% between July and August, reaching 66,160, the lowest level in a year.
The platform’s regulatory preparations and high-profile advisory additions position it for a potential pivot in these numbers with a US expansion.
The post Polymarket seeking funding round that could surge its valuation to $10B appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Fed Officials Turn Hawkish: Daly Says Supply Shocks Should No Longer Be "Wait-and-See," Hammack Suggests More Aggressive Rate Hikes May Be Needed if Inflation Expectations Become Entrenched
San Francisco Fed President Daly stated that the traditional "wait and see" approach to supply-side shocks has been abandoned, noting that businesses in her district are tending to pass rising costs on to consumers and that current inflation risks are "skewed fully to the upside." Cleveland Fed President Hammack said that once the public forms an "inflationary mindset," the difficulty of monetary policy regulation will increase significantly, and the required interest rate hikes will then exceed expectations.
Australian Dollar crumbles as job losses shatter RBA rate hike hopes
Over $10 billion in market value evaporated in four trading days as CoreWeave (CRWV.US) debt risks trigger sell-off, but Deutsche Bank sees it as a buying opportunity
Deutsche Bank believes that the recent sell-off of CoreWeave lacks sufficient company fundamentals to justify it, and the sharp price correction has instead created a buying opportunity for investors.
Overnight US Stock Market | Inflation Pressure Continues to Rise, All Three Major Indexes Up, Dell (DELL.US) Down 6.8%
At the close of trading, the Dow Jones Industrial Average rose 557.51 points, or 1.08%, to 52,178.99 points; the S&P 500 Index gained 25.18 points, or 0.33%, to 7,744.12 points; and the Nasdaq Composite Index increased by 20.16 points, or 0.08%, to 26,713.03 points.
Crypto prices
More
