Polymarket, a prediction market platform, is currently in discussions to secure new funding that could potentially boost its valuation to $10 billion, as reported by Business Insider on September 12. This represents a significant increase from the $1 billion valuation Polymarket achieved in a recent funding round earlier this year.
Sources familiar with the matter revealed that at least one investor has offered a term sheet valuing the company at $10 billion. However, a Polymarket spokesperson declined to comment on the ongoing funding talks.
The reported surge in valuation comes on the heels of several strategic developments that have positioned Polymarket for a resurgence in the US market. The Commodity Futures Trading Commission recently granted regulatory approval for the platform to resume operations in the US through a no-action letter issued to QCX LLC, Polymarket’s regulatory partner. This approval allows Polymarket to operate event contracts while remaining compliant with federal derivatives regulations, marking a significant milestone after the platform ceased US operations in 2022 due to regulatory issues.
In addition, Polymarket made headlines when Donald Trump Jr. joined the platform’s advisory board in August. His venture capital firm, 1789 Capital, also made a strategic investment in Polymarket. This partnership brings valuable political expertise to Polymarket as it gears up for its reentry into the US market. Trump Jr. lauded the platform for its ability to cut through media bias and provide unbiased information.
CEO Shayne Coplan emphasized that the partnership with 1789 Capital reinforces Polymarket’s reputation as a trusted source of information, while Omeed Malik, the founder of 1789 Capital, commended Polymarket for its innovative approach to finance and commitment to free expression.
Despite these positive developments, Polymarket has experienced a slowdown in user growth. While the platform has seen a significant increase in trading volume, with year-to-date volume surpassing last year’s total, the number of active and new users has declined. Monthly active traders peaked in January but have since decreased, reaching 226,442 in August. Similarly, new user sign-ups dropped by 33% between July and August, hitting the lowest level in a year.
Nevertheless, with its regulatory hurdles cleared and high-profile advisory board additions, Polymarket is well-positioned for a potential turnaround in user growth as it prepares to expand its operations in the US market.