Billionaire Peter Thiel’s Venture Capital Firm Leads Polymarket’s $45 Million Series B Funding Round

Billionaire Peter Thiel’s Founders Fund recently led the Series B funding round for the crypto-based prediction markets platform, Polymarket, which raised $45 million. The latest round valued Polymarket lower than the $1 billion it had anticipated before the Commodity Futures Trading Commission proposed a ban on events betting contracts.

CFTC Seeks to Clamp Down on Event Betting Contracts

The crypto-based predictions firm, Polymarket, recently closed a $45 million Series B funding round led by billionaire Peter Thiel’s Founders Fund. The total raised in the firm’s latest funding round brings the capital raised over two rounds to $70 million.

According to a Bloomberg report, the latest round values Polymarket at levels lower than the $1 billion it was eyeing before the Commodity Futures Trading Commission (CFTC) proposed a ban on the trading of derivatives betting on political contests and sports games. If approved, the proposal would see the CFTC clampdown on the so-called event betting contracts.

Polymarket, which has popularized bets on things like the outcome of the upcoming U.S. Presidential Elections to monetary policy outcomes, was previously fined $1.4 million and ordered to shut down its non-compliant markets. As reported by Bitcoin.com News in early January 2022, Polymarket confirmed at the time that it would comply with the order. It added that it would “prematurely” wind down three markets.

Since then, the predictions firm attempted to mend its relations with the regulator and went as far as appointing former CFTC head Christopher Giancarlo as the chairman of its advisory board.

Commenting on Founders Fund’s decision to invest in a platform that facilitates event-betting contracts for the first time, Joey Krug, a partner at the venture capital firm, said:

A lot of the reason why certain people don’t like prediction markets in the U.S. kind of dates back to pretty puritanical thinking about betting. In the short- to mid-term it’s good for Polymarket because they are targeting non-U.S. markets.

Krug added that they are also hoping that U.S. citizens will be able to participate in this market over the long run.

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