Donald Trump Jr.’s venture firm 1789 Capital is leading a $1 billion funding round for prediction market Polymarket, contributing $300 million to value the platform at $21 billion. The investment arrives as Polymarket scales up its institutional offerings and navigates a shifting U.S. regulatory landscape.
1789 Capital Pours $300 Million Into Polymarket as Valuation Hits $21 Billion
Venture capital firm 1789 Capital is taking a commanding financial position in prediction markets by backing Shayne Coplan’s Polymarket at a $21 billion post-money valuation. According to financial reporting, Donald Trump Jr.’s firm is supplying $300 million toward the broader $1 billion financing effort.
The rapid markup in valuation highlights a brisk capital-raising pace for the platform. Polymarket was previously valued at $15 billion just four months prior, marking a swift escalation in investor appetite for event-contract infrastructure. The enterprise counts the president’s eldest son not only as a financial backer through his role as a partner at 1789 Capital, but also as a strategic advisor who formally announced the partnership on X, stating he looks forward to helping the platform grow.
Bloomberg reported earlier this month that the firm was in early talks to raise capital at a valuation of more than $20 billion. Polymarket completed a round at a $15 billion valuation in April, when it brought in D.E. Shaw and venture capital firm G Squared as new investors, Bloomberg previously reported. A spokesperson for Polymarket declined to comment. The investment provides another indication of the rapid growth of prediction markets, which offer ways to bet on everything from sports to elections. However, Polymarket has lagged the growth of its main rival, Kalshi, this year amid operational and legal issues. In May, Kalshi raised money at a $22 billion valuation. Donald Trump Jr., a partner at 1789, is an adviser to both Polymarket and Kalshi.
The investment firm has held a stake in the prediction market operator for a year and is said to be a vital part of a new financing round effort that takes the valuation on Shayne Coplan’s company to approximately $21 billion, up from the $15 billion Polymarket was valued at just four months ago. It’s rumored that although 1789 Capital’s initial stake in Polymarket was relatively small, it’s multiplied in value many times over following the $15 billion valuation — something that’s occurred with another one of the firm’s investments in the prediction market industry. The president’s eldest son is also an advisor to Polymarket and another well-known company in the event contracts space. Already one of the largest non-technology unicorns, Polymarket is raising capital at a brisk pace in 2026 as it looks to keep pace with competitors and bring more professional traders to its platform. The April funding round of $1 billion included another $600 million from New York Stock Exchange owner Intercontinental Exchange (NYSE: ICE) as well as an additional $400 million from a group of investors led by hedge fund D.E. Shaw, confirming appetite for prediction market stakes remains robust among professional investors.
Regulatory Clearance and the Push Into U.S. Markets
The fresh capital arrives alongside critical structural shifts for the prediction market leader. Polymarket recently secured a clearer regulatory pathway into the United States after acquiring derivatives exchange QCEX for $112 million, netting a Commodity Futures Trading Commission license in the process.
That acquisition coincides with the formal closure of investigations by both the Department of Justice and the CFTC. Those federal probes had previously involved high-profile actions, including an FBI search of CEO Shayne Coplan’s apartment in November last year. With federal scrutiny cleared, the platform is actively courting professional and institutional traders by introducing private-market products, graphics processing unit (GPU) compute trades, and seeking regulatory clearance for margin trading.
Polymarket’s latest capital-raising drive arrives just months after the company finally launched anew its U.S. prediction market and amid efforts to shed the prediction market image of being a new-fangled alternative to sports betting. Polymarket’s courtship of the more sophisticated institutional investment community has including launching a fresh spin on private markets and graphic processing units (GPUs) compute trades as well as a request to regulators to allow margin trading on the platform. Discussions between Polymarket and 1789 Capital began around 18 months ago, but the investment was held back until there was regulatory clarity.
Inside the Growth of 1789 Capital’s Portfolio
The substantial cash injection into Polymarket underscores the rapid ascent of 1789 Capital. Founded by Omeed Malik, a former investment banker in New York, and Christopher Buskirk, a once-struggling Arizona businessman who became a confidant of conservative tech billionaire Peter Thiel and JD Vance, the venture fund crossed $1 billion in assets following Donald Trump’s return to the White House and the addition of Donald Trump Jr. as a partner. The firm was once a niche experiment that aimed to align equity investing with conservative political values, growing into a financial powerhouse following two strokes of fortune: Trump’s election in November and the addition of his eldest son as a 1789 partner that same month.
Interviews with people close to the firm, along with financial records, reveal a dramatic expansion in its portfolio to include defense contractors, AI startups and other companies. Its recent deals include investments in three of tech billionaire Elon Musk’s companies: rocket maker SpaceX, artificial intelligence startup xAI, and brain-implant company Neuralink, according to two people with knowledge of 1789 Capital and its deals. The deals came together after Malik met Musk during the Trump campaign. Many of 1789 Capital’s recent investments have not been previously reported, including a stake in Perplexity AI, an artificial intelligence company, and Juul Labs, the e-cigarette manufacturer. The fund has also backed a series of emerging ventures, including Hadrian, a defense manufacturing startup. The firm’s investments typically range from $5 million to $50 million. The partners also made waves with the opening of a social club in the Georgetown neighborhood of Washington, DC. Today, the fund has over $1 billion in assets, thanks to a surge of new investments since Trump’s return to power, according to the two people familiar with 1789 Capital and its deals.
Navigating Competition in the Event Contracts Space
Even with its massive new valuation, Polymarket faces intense rivalry within the surging prediction market sector. Main competitor Kalshi raised funds at a $22 billion valuation in May, maintaining a strong competitive footprint. Interestingly, Donald Trump Jr. has maintained advisory ties to both platforms, having previously joined Kalshi as a strategic advisor in a role understood to be paid but not linked to any financial investment, before throwing his fund’s financial weight behind Polymarket.
As 1789 Capital sees Polymarket as a potential IPO candidate in the near future, the platform’s development comes as the company gears up for a potential expansion into the US market following the closure of regulatory investigations. Trump Jr announced the investment in a post on X, saying, Pleased to announce that my fund @1789capital has invested in @Polymarket and that I will be joining the team as a Strategic Advisor.
He added, Prediction markets have completely changed the way people follow the news. I'm proud to support the industry and look forward to helping Polymarket grow!
По теме
