Prediction market Polymarket is currently in talks to secure new funding that could potentially boost its valuation to $10 billion, according to a report 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 summer.
Sources familiar with the matter have revealed that discussions regarding the valuation have already taken place, with at least one investor offering a term sheet valuing the company at $10 billion. However, a Polymarket spokesperson has refrained from commenting on the ongoing funding talks.
The surge in valuation comes on the heels of a series of strategic developments that have positioned Polymarket for a major comeback 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 ensuring compliance with federal derivatives regulations, marking a significant milestone after the platform halted US operations in 2022 due to a CFTC settlement.
In addition to the regulatory approval, 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 US market reentry. Trump Jr. lauded the platform for its ability to cut through media spin and expert opinions, highlighting its role as a trusted information source.
Despite a recent slump in user growth, Polymarket has managed to surpass $8.5 billion in year-to-date trading volume as of September 12, exceeding last year’s total volume. However, the platform has experienced a decline in both active and new users, with monthly active traders dropping from 454,664 in January to 226,442 in August. New user sign-ups also saw a significant decrease, reaching the lowest level in a year at 66,160.
With its regulatory preparations and high-profile advisory board additions, Polymarket is well-positioned for a potential turnaround in user numbers as it sets its sights on expanding its presence in the US market. The platform’s focus on market-driven predictions and its commitment to financial innovation and free expression make it a compelling player in the prediction market space.