Founders Fund Invests $70M in Election Betting Platform
Peter Thiel’s venture capital firm, Founders Fund, along with Ethereum co-founder Vitalik Buterin, have led a $70 million fundraising campaign for Polymarket, a platform that enables betting on political events. Polymarket managed to raise $70 million in two funding rounds, with the latest Series B round raising $45 million. This comes at a time when betting on the 2024 U.S. presidential elections is gaining traction. Despite facing proposed bans by the Commodity Futures Trading Commission (CFTC) regarding political contest betting, the crypto-based prediction market continues to thrive. Joey Krug, a Partner at Founders Fund, believes that the negative view on prediction markets in the U.S. is rooted in conservative attitudes towards gambling.
Krug suggests that the current situation could be advantageous for Polymarket since their target market is predominantly non-U.S. In the long term, it would be beneficial if Americans could also participate. This investment represents Founders Fund’s first foray into event-betting contracts. Polymarket has previously faced penalties from the CFTC and, as part of a settlement, agreed to limit its services in the United States. To improve its relationship with regulators, the platform has appointed the former head of the CFTC, J. Christopher Giancarlo, as the chairman of its advisory board.
Polymarket has experienced a surge in betting volume as the U.S. presidential elections approach. The platform allows users to purchase shares using Circle USD without needing to hold customer funds. Under the leadership of its 25-year-old founder, Shayne Coplan, Polymarket has seen more than $170 million in wagers placed on the upcoming U.S. elections, according to its website. Coplan remains optimistic about the potential of the U.S. market, despite the regulatory setbacks faced by the platform. He believes that markets for any topic people are interested in will ultimately exist.
Despite the recent successful funding rounds, Polymarket’s current valuation has been negatively affected by regulatory challenges and is now lower than its previous estimate of around $1 billion. While the platform is not currently generating revenue, it has shown promise in attracting users and bets on various events, particularly political contests. With the support of key investors and its efforts to mend relationships with regulators, Polymarket aims to continue growing and eventually expand its reach to the U.S. market.
22 thoughts on “Founders Fund Invests $70M in Election Betting Platform”
Leave a Reply
You must be logged in to post a comment.
Even with the regulatory setbacks, Polymarket is showing promise and attracting users. The sky’s the limit! Keep pushing forward!
Polymarket has faced penalties before, so why should we trust them now? It seems like they don’t really care about regulations at all.
So now, instead of generating revenue, Polymarket wants to expand its reach. It seems like they’re just grasping at straws to stay afloat.
It’s great that Polymarket’s target market is non-U.S. since the negative view on prediction markets in the U.S. is limiting. Let’s hope it changes in the future!
J. Christopher Giancarlo’s appointment as chairman of Polymarket’s advisory board is a smart move to improve its relationship with regulators. Well done!
I’m glad Polymarket is making event-betting contracts more accessible to users. It’s a game-changer! 🌟
Even with the recent challenges, Polymarket is showing promise and attracting users. The future looks bright! 💡
This whole situation reeks of opportunism and greed. It’s disheartening to see that even in the world of predictions, money talks.
Polymarket’s efforts to mend relationships with regulators seem like a desperate attempt to save face. It’s questionable if they’re really sincere.
Congrats to Polymarket on raising $70 million! Your success shows the potential of crypto-based prediction markets!
Congrats to Polymarket on the successful funding rounds! Your efforts to attract users and bets are paying off! 💰
Polymarket’s potential in the non-U.S. market is huge! Cheers to crossing international borders and bringing prediction markets to everyone!
Shayne Coplan’s belief that markets for any topic people are interested in will ultimately exist is so refreshing! Keep innovating, Polymarket!
million raised? That money could have been put to much better use, like funding initiatives that actually benefit society.
It’s concerning that a former CFTC head is now the chairman of Polymarket’s advisory board. It raises questions about potential conflicts of interest.
million in wagers placed on the upcoming U.S. elections? That’s incredible, Shayne Coplan and Polymarket! The potential is huge!
The surge in betting volume for Polymarket as the U.S. presidential elections approach is incredible! It’s a testament to its popularity and potential.
The fact that this platform is based on cryptocurrency makes it even more concerning. It’s like they’re trying to evade regulation and oversight.
Keep fighting, Polymarket! Despite the lower valuation, your determination and efforts to mend relationships with regulators will bring success in the long run!
This is just encouraging more gambling and speculation in the already volatile world of politics. It’s not healthy for democracy!
I don’t see how this platform can be considered beneficial or advantageous in any way. It’s just contributing to the negative aspects of politics.
I love how Polymarket is allowing users to purchase shares without the need to hold funds. It’s making it more accessible for everyone!