Polymarket raises $70m backed by Peter Thiel’s VC firm

Peter Thiel’s venture capital firm, Founders Fund, led the effort to raise $70 million for Polymarket.

Bloomberg writes that Polymarket, a platform that allows users to bet on political events, raised $70 million in two rounds. The latest fundraising round was led by the Founders Fund and raised $45 million.

Commenting on the Commodity Futures Trading Commission’s (CFTC) proposal for political betting bans, Founders Fund partner Joey Krug noted that some people dislike prediction markets in the US due to their puritanical view of gambling.

“In the short to medium term this is good for Polymarket because they are targeting markets outside the US. “In the long run, it would be good for Americans to participate in this market.”

Joey Krug, Founders Fund partner

Election-related betting has resulted in a significant increase in activity at Polymarket, as more than $170 million has been wagered on US election-related events. Former President Donald Trump even shared his predictions about Polymarket’s possible return to the White House.

Source: Polimarket

In early 2022, the CFTC fined Polymarket $1.4 million for serving over-the-counter binary options trading without proper registration. Cooperation with the regulator earned Polymarket a reduced penalty. The project confirmed that the issue was successfully resolved.

We are pleased to confirm that we have successfully reached a settlement with the CFTC and are excited to move forward and focus on the future of Polymarket.

According to the decision, 3 markets that continue after 1/14 and do not comply with the Law will be resolved prematurely. More coming soon
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— Polimarket (@Polymarket) January 3, 2022