Peter Thiel’s Founders Fund, Vitalik Buterin Back $45M Investment in Polymarket

As a seasoned crypto investor with a keen interest in prediction markets, I’m thrilled to see Polymarket’s meteoric rise and the impressive investment it has secured from industry heavyweights like Peter Thiel’s Founders Fund and Ethereum creator Vitalik Buterin. With over $75 million in funding, the company is well-positioned to expand its reach and establish itself as a major player in this nascent market.

In the buzzing lead-up to the U.S. presidential election, Polymarket – the groundbreaking cryptocurrency prediction market platform – secured an impressive $45 million investment in their series B funding round. This significant financial boost came from a prestigious lineup of prominent investors.

Expert: Peter Thiel’s Founders Fund serves as the primary investor in Polymarket, according to Shayne Coplan’s communication with CoinDesk. Additional investors include Vitalik Buterin, creator of Ethereum, 1confirmation, ParaFi, and Dragonfly Capital, Coplan revealed without specifying the company’s valuation in this funding round.

As a researcher, I’ve uncovered some exciting news about Polymarket’s recent funding round. This previously undisclosed Series A was spearheaded by General Catalyst, bringing in a substantial $25 million. Adding the $4 million from their 2020 seed round to the equation, Polymarket has now raised nearly $75 million in total funds.

The firm announced that they brought in Richard Jaycobs to lead their market expansion team, with him having prior experience as the president of the Cantor Exchange and CEO of The Clearing Corporation within traditional financial firms.

Polymarket stands out as the most accomplished endeavor to construct prediction markets using cryptocurrency foundations. Prediction markets involve investors wagering real funds on the results of authentic, time-bound events. The scope of these events encompasses a wide array of subjects, from sports contests and celebrity relationships to geopolitical developments and weapons technology.

Advocates like economist Robin Hanson contend that these markets go beyond simple gambling. They generate beneficial byproducts by providing more precise reflections of public opinion and more dependable predictions than surveys and experts.

Last year, analysts at Bitwise Investments projected that approximately $100 million would be wagered on crypto-prediction markets, with Polymarket leading the pack, by the end of 2024. However, a single contract on Polymarket has already surpassed this forecasted amount.

More than $125 million of bets have been placed on the presidential election through the platform.

Polymarket faces a significant drawback: It is prohibited from operating in the United States, home to the global leader in economic size. Following a 2022 agreement with the Commodity Futures Trading Commission, American residents are off-limits for its services. Consequently, Kalshi, the lone CFTC-approved prediction market platform that settles bets in fiat currency, has seized the opportunity to dominate the market.

As a researcher studying the regulatory landscape of event contracts, I’ve come to realize that the CFTC’s endorsement is a complex issue. While it provides legitimacy and operational flexibility for platforms like Kalshi and PredictIt, it also puts them in a precarious position.

As a dedicated researcher following the latest developments in the field of cryptocurrency and blockchain technology, I’m thrilled to share that I have the privilege to present at CoinDesk’s Consensus 2024 conference taking place in Austin, Texas, on May 31. For those interested in attending this prestigious event, kindly secure your registration here.