We prove a conjecture of Bonamy, Bousquet, Pilipczuk, Rzążewski, Thomassé, and Walczak, that for every graph $H$, there is a polynomial $p$ such that for every positive integer $s$, every graph of average degree at least $p(s)$ contains either $K_{s,s}$ as a subgraph or contains an induced subdivision of $H$. This improves upon a result of Kühn and Osthus from 2004 who proved it for graphs whose average degree is at least triply exponential in $s$ and a recent result of Du, Girão, Hunter, McCarty and Scott for graphs with average degree at least singly exponential in $s$. As an application, we prove that the class of graphs that do not contain an induced subdivision of $K_{s,t}$ is polynomially $χ$-bounded. In the case of $K_{2,3}$, this is the class of theta-free graphs, and answers a question of Davies. Along the way, we also answer a recent question of McCarty, by showing that if $\mathcal{G}$ is a hereditary class of graphs for which there is a polynomial $p$ such that every bipartite $K_{s,s}$-free graph in $\mathcal{G}$ has average degree at most $p(s)$, then more generally, there is a polynomial $p'$ such that every $K_{s,s}$-free graph in $\mathcal{G}$ has average degree at most $p'(s)$. Our main new tool is an induced variant of the Kővári-Sós-Turán theorem, which we find to be of independent interest.