Polymarket seeking funding round that could 10x 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.”
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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.
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