Donald Trump Jr.’s investment firm, 1789 Capital, is leading a $1 billion funding round in the prediction market platform Polymarket, valuing the company at approximately $21 billion. As part of this round, 1789 Capital plans to invest around $300 million, according to multiple sources, marking a significant increase from its previous $200 million stake in the company.
Polymarket, which enables users to place wagers on a variety of events ranging from political outcomes to entertainment milestones, has seen rapid growth in popularity over the past year. The platform, along with rivals like Kalshi, has attracted regulatory scrutiny for offering markets that some officials view as a form of gambling. Both companies have faced criticism and legal challenges, including allegations related to insider trading and concerns that more participants lose money than win.
1789 Capital’s involvement in Polymarket follows a broader trend of the firm’s investments in companies benefiting from recent regulatory changes under the Trump administration. Donald Trump Jr., a partner in 1789 Capital, has been advising Polymarket and Kalshi since 2024 and holds financial stakes in both. He has emphasized that his investments are personal and that he does not hold any official government policy role.
The firm's growth has been notable, expanding from managing a few hundred million dollars two years ago to overseeing more than $3 billion today. In addition to Polymarket, 1789 Capital holds shares in prominent private companies such as SpaceX, Anduril, Cerebras, and Reflection AI. The firm has attracted attention partly due to the intersection of its investments and political connections. For example, 1789 Capital hosted a Republican fundraiser with Vice President JD Vance at its founder Omeed Malik’s New York Hamptons residence, drawing attendance from Donald Trump Jr. and Polymarket CEO Shayne Coplan.
Polymarket’s largest shareholder remains Intercontinental Exchange, which holds about 22% of the company following a $1.6 billion investment announced earlier this year. Polymarket has also entered into a data partnership with Dow Jones, the publisher of The Wall Street Journal.
The company's rising profile and 1789 Capital’s expanding footprint have prompted scrutiny from lawmakers. House Democrats, including Representative Jamie Raskin, have requested detailed information from 1789 Capital regarding its investments, government communications, and the decision to bring Donald Trump Jr. on as a partner. 1789 Capital’s legal counsel has dismissed conflict of interest allegations as unsubstantiated. Meanwhile, regulatory debates continue, with state attorneys general advocating for state-level oversight of prediction markets, opposed by some who favor federal regulation. Several states are currently engaged in litigation over how these platforms should be governed.