The Clearing Company Raises $15M Seed Round as Prediction Markets Accelerate in the U.S.

The prediction market space is attracting an increasing number of players, as The Clearing Company, a startup led by former Polymarket employees, has raised $15 million in seed funding to build a regulated, on-chain prediction market.

This investment underscores a surge of investor and operator interest in the once-niche sector.

Backed by Heavyweights

Union Square Ventures led the $15 million funding round. Other investors included Haun Ventures, Variant, Coinbase Ventures, Compound, Rubik, Earl Grey, Cursor Capital, Asylum, and several others.

The company was founded by Polymarket veterans Toni Gemayel (former Head of Growth), Niraek Jain-Sharma (former Head of Markets), and engineers Liam Kovatch (former Head of Engineering), Nick Beattie, and Daniel Ramirez.

According to The Clearing Company’s announcement, the platform will combine the openness of blockchain with U.S. regulations, aiming to create “on-chain, permissionless, regulated markets.”

Polymarket Preps for U.S. Comeback

The Clearing Company’s founders bring direct experience from Polymarket, a cryptocurrency decentralized prediction market platform that has become the world’s largest in trading volume.

Polymarket currently does not allow access to users in the U.S., following its agreement to exit the country in 2022. That was a result of regulatory actions and a $1.4 million fine by the Commodity Futures Trading Commission (CFTC).

However, Polymarket’s U.S. exile will soon come to an end. Recently, it acquired QCEX, a CFTC-registered Designated Contract Market, positioning itself to re-enter the U.S. legally.

That could align with football season. Last week, Polymarket ran football-related advertisements in states like California, Texas, and Georgia. Additionally, the company briefly posted a Head of Sports position on LinkedIn.

Polymarket’s imminent entry into the U.S., coupled with Clearing’s preparation to launch, signals that the space is moving beyond experimental crypto markets into regulated U.S. finance.

Novig Raises $18M Amid Regulatory Pressure

Clearing’s seed is the second high-profile funding this month. About two weeks ago, Novig, another prediction market startup, raised $18 million in Series A financing. After that, it claimed to be the “number one sports prediction market in the U.S.”

Frontrunner Ventures led the August 11 funding, with existing investors Y Combinator, NFX, Perceptive Ventures, and Gaingels all participating. Founded by Jacob Fortinsky and Kelechi Ukah, Novig has surpassed $2 billion in trading volume since its initial public offering in September 2024.

However, unlike other prediction platforms such as Kalshi, Novig allows users to trade using “Novig Cash” in a sweepstakes model. That enables it not to require a sports betting or CFTC licensing.

Still, the sweepstakes casino model has faced a growing regulatory and legislative pressure across the U.S., putting Novig’s strategy at risk. Last week, the prediction market exited New Jersey, following a ban on dual-currency gambling in the state.

Previously, Novig left Colorado and Arizona after regulatory pressure.

FanDuel Steps In, DraftKings Could Follow

The momentum of prediction markets is also attracting mainstream sports betting operators.

After months of speculation, FanDuel officially announced earlier this month plans to expand into the sector. Together with the CME Group, the operator will create a federally regulated platform. The joint venture will operate as a non-clearing futures commission merchant (FCM) under the oversight of the CFTC.

Notably, FanDuel does not plan to offer sports event contracts (at least initially). Customers will be able to take positions as small as $1 on yes-or-no outcomes related to various topics. They include the S&P 500 and the Nasdaq-100, as well as oil, gas, gold, and cryptocurrencies.

Recently, representatives of Flutter (FanDuel’s parent) informed Nevada regulators that the company complies with all regulatory requirements, reviewing each step with its internal compliance department and state regulators.

FanDuel’s plans have turned the attention to rival DraftKings’ next step. During the Q2 2025 earnings call, CEO Jason Robins highlighted prediction markets as a potential future growth channel.

Previously, rumors emerged that DraftKings is exploring the acquisition of Railbird Exchange, a CFTC-licensed prediction market startup.

A Sector at an Inflection Point

With startups raising tens of millions, Polymarket poised for a regulated U.S. return, and sportsbook giants exploring entry, prediction markets are shifting into the mainstream.

What was once a niche experiment is now attracting blue-chip venture capital and industry incumbents. With little indication so far that the CFTC intends to limit the types of contracts that can be offered, the sector could be the next growth channel for many operators and investors.