Peter Thiel-backed Founders Fund is leading the round
Blockchain-based prediction platform Polymarket is reportedly finalizing a $200 million funding round, setting its valuation at $1 billion, according to sources cited by Reuters and Bloomberg. The round is led by Founders Fund, the venture capital firm founded by billionaire Peter Thiel, marking a significant step for the controversial platform.
Despite regulatory setbacks in the U.S., including an FBI raid in November 2023 that targeted founder Shayne Coplan, Polymarket is poised to achieve unicorn status—a title reserved for startups valued at over $1 billion.
Rapid growth despite U.S. ban
While American users remain blocked, Polymarket has seen explosive growth internationally. In November 2024, during the U.S. presidential election, trading volume surged to $2.5 billion, driven by bets on political outcomes, geopolitical conflicts, and economic trends.
Polymarket enables users to bet on real-world events using cryptocurrency. Active markets include the likelihood of a U.S. recession, Middle East tensions, Federal Reserve interest rate decisions, and even legislation odds, such as the 87% chance that the GENIUS Act stablecoin bill will pass this year.
New partnership with Elon Musk’s X and Grok AI
In early June, Polymarket announced a partnership with X, Elon Musk’s social media platform. The deal aims to integrate Polymarket’s prediction engine with Grok, an AI chatbot developed by Musk’s team, expanding access to real-time forecasting and user-generated sentiment analysis.
Monthly volumes top $1 billion
The platform now boasts approximately 1.2 million users, with 21,000 open markets and 20 million open positions. According to Dune Analytics, Polymarket recorded $1.1 billion in trading volume in May 2025—down from its record in November but still indicative of strong ongoing engagement.
Polymarket faces global regulatory pushback
Polymarket’s rise has come with increasing regulatory scrutiny. In addition to being banned in the United States, the platform is also restricted or banned in France, Singapore, Thailand, Taiwan, Poland, and Belgium.
Critics have also raised concerns about market manipulation and the ethics of real-world event wagering. Still, Polymarket remains one of the leading platforms in the decentralized prediction market space, competing with projects like Kalshi, which is backed by Y Combinator and Sequoia Capital.
Conclusion: Betting on the future, literally
Polymarket’s upcoming $200 million raise signals that investor confidence remains high despite legal hurdles. With a powerful mix of blockchain innovation, AI integration, and a rapidly growing user base, Polymarket continues to position itself as a dominant force in the emerging world of crypto prediction markets.
