Polymarket seeking funding round that could 10x its valuation to $10B
Prediction market Polymarket is pursuing new funding that could enhance its valuation to $10 billion, as Business Insider reported on Sept. 12.
Two folks with data of the matter mentioned the valuation discussions characterize at the least a threefold improve from the $1 billion Polymarket achieved in a funding round that closed this summer season.
According to one supply, at the least one investor supplied a time period sheet valuing the corporate at $10 billion. A Polymarket spokesperson declined to touch upon the funding talks.
Strategic developments
The reported valuation surge follows a collection of strategic developments positioning Polymarket for a US comeback.
The Commodity Futures Trading Commission granted regulatory approval for the platform to resume US operations by means of a no-action letter issued Sept. 3 to QCX LLC, Polymarket’s regulatory companion, acquired for $112 million in July.
The regulatory greenlight allows Polymarket to function occasion contracts whereas sustaining compliance with federal derivatives laws. It additionally marks a return after the platform ceased US operations in 2022 following a $1.4 million CFTC settlement over unregistered derivatives buying and selling.
Additionally, Donald Trump Jr. joined Polymarket’s advisory board in August as his enterprise capital agency 1789 Capital made a strategic funding within the platform.
The partnership provides political experience as Polymarket prepares for US market entry. Trump Jr. lately praised the platform for chopping by means of “media spin and so-called skilled opinion.”
Polymarket CEO Shayne Coplan characterised the 1789 Capital partnership as reinforcing the corporate’s position as a trusted info supply, whereas the agency’s founder, Omeed Malik, praised Polymarket’s intersection of economic innovation and free expression.
Slump in consumer progress
Polymarket operates as a prediction market the place customers place bets on outcomes starting from political elections to cultural occasions, producing market-driven predictions.
Data from a Dune dashboard by Varrock founder Richard Chen reveals that Polymarket crossed $8.5 billion in year-to-date trading volume as of Sept. 12, surpassing final yr’s whole quantity.
The buying and selling quantity improve happens regardless of a stoop in lively and new customers. Polymarket’s month-to-month lively merchants peaked in January at 454,664, progressively falling to attain August’s 226,442 after a 20% fall from July.
Meanwhile, new customers plunged 33% between July and August, reaching 66,160, the bottom stage in a yr.
The platform’s regulatory preparations and high-profile advisory additions place it for a possible pivot in these numbers with a US enlargement.
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