Founders Fund, led by Peter Thiel, supports Polymarket’s $200 million funding round at a $1 billion valuation.

Polymarket, a cryptocurrency-based prediction market platform, is close to finalizing a $200 million funding round that would value the company at $1 billion, as reported by Reuters.

Key Takeaways:

• Polymarket is approaching a $200M funding round at a $1B valuation, spearheaded by Founders Fund.
• In spite of domestic bans and an FBI raid, the platform continues to expand and secure significant investment.
• With over 21,000 active markets, Polymarket has established itself as a global center for political and economic wagering.

The funding round is being led by Founders Fund, the venture capital firm co-founded by billionaire investor Peter Thiel.

This deal would grant Polymarket “unicorn” status, marking a significant achievement for a company that remains unavailable to users in the U.S.

Banned and Raided, Polymarket Still Attracts Major Investment

Even though it faces domestic bans and scrutiny from federal authorities, including a November FBI search that led to the confiscation of electronics from founder Shayne Coplan, Polymarket has managed to draw both investment and attention.

This new funding follows over $100 million in previous investments, which includes an undisclosed $50 million round earlier in 2025.

It also comes shortly after Polymarket revealed a partnership with Elon Musk’s X, aimed at integrating its betting markets with insights from Grok, X’s AI chatbot.

This might be the most unexpected partnership of the year:
X just teamed up with Polymarket.
The platform that predicted Trump’s win while every poll showed 50–50.
But this isn’t just a partnership…
It’s the death of traditional media.
Here’s why it changes EVERYTHING: pic.twitter.com/gh2y2Ho601

— Ricardo (@Ric_RTP) June 7, 2025

Polymarket has garnered attention for its swift expansion, particularly during the 2024 U.S. presidential election.

At its highest point in November, trading volume soared to $2.5 billion, driven by speculation surrounding political and geopolitical developments.

The platform enables users to wager on a variety of subjects, including global conflicts, economic trends, legislation, and local politics.

Recent markets feature predictions on a potential U.S. recession, the chances of Israel attacking Iran again, and the probability of the stablecoin-focused GENIUS Act being enacted, currently estimated at 87% according to the site.

As per its analytics dashboard, Polymarket offers more than 21,000 active markets, with 1.2 million traders, 20 million open positions, and $700 million in active trading volume.

Data from Dune Analytics indicates that May’s monthly trading volume was $1.1 billion, a decrease from the November peak but still considerable.

While its growth has been impressive, Polymarket also encounters regulatory challenges beyond the U.S., facing bans or restrictions in France, Singapore, Thailand, Taiwan, Poland, and Belgium. It has also attracted scrutiny regarding alleged manipulation of outcomes.

The firm competes with other prediction platforms such as Kalshi, which is supported by Sequoia Capital and Y Combinator.

CFTC Investigates Super Bowl Contracts by Crypto.com and Kalshi

In March, the CFTC announced it is examining Super Bowl-related prediction contracts offered by Crypto.com and Kalshi Inc. to assess their compliance with federal derivatives regulations.

Crypto.com launched its sports event trading product last year, allowing users to make predictions on major events like the Super Bowl.

Nonetheless, the CFTC has raised concerns about whether such contracts qualify as legal derivatives.

In January, the agency’s five commissioners voted to commence a 90-day review of the Super Bowl futures products, effectively prolonging the investigation beyond the game’s February 9 kickoff.

The post Peter Thiel’s Founders Fund Backs $200M Raise for Polymarket at $1B Valuation appeared first on Cryptonews.