1789 Capital, Connected to Trump Jr., Spearheads Polymarket's $1 Billion Funding Round
Investment firm 1789 Capital, where Donald Trump Jr. serves as partner, is set to spearhead a $1 billion funding round for Polymarket, establishing the blockchain prediction platform's valuation at $21 billion, marginally under competitor Kalshi's $22 billion value.
An investment firm associated with Donald Trump Jr., known as 1789 Capital, is purportedly committing approximately $300 million to Polymarket, a prediction market platform built on blockchain technology.
According to sources with knowledge of the situation who spoke with the Wall Street Journal on Monday, 1789 Capital—where Donald Trump Jr. holds a partnership position—will contribute the $300 million as part of a larger $1 billion funding round that is expected to establish Polymarket's valuation at $21 billion.
This particular investment would elevate 1789 Capital's cumulative stake in Polymarket to approximately $500 million, positioning the firm as one of the prediction market platform's most significant financial supporters.
Cointelegraph has reached out to both 1789 Capital and Polymarket seeking commentary on the matter.
ICE continues to hold the position as Polymarket's most substantial disclosed investor. According to a 10-Q filing submitted on July 30, ICE disclosed that it had made a combined investment of $1.6 billion in Polymarket preferred shares. These holdings showed a carrying value of roughly $2 billion as of June 30 and accounted for approximately 22% of outstanding shares, equivalent to 14% when calculated on a fully diluted basis.
Reports indicate that Polymarket initiated discussions to secure $400 million in new capital back in April, at which time the platform was pursuing these funds at a prospective $15 billion valuation, positioning it below the $22 billion valuation achieved by its primary competitor, Kalshi.
Prediction market platforms are encountering heightened regulatory examination across the US and globally. On Aug. 14, reports emerged that JPMorgan Chase terminated a banking relationship with Polymarket due to regulatory apprehensions, though the financial institution indicated it continues to be interested in a potential underwriting role should Polymarket pursue a public listing.
Legal challenges against Polymarket, Kalshi, or both platforms have been initiated by more than a dozen US states concerning sports event contracts, while regulatory authorities in multiple countries have implemented blocks or imposed restrictions on access to Polymarket.