Led by Donald Trump Jr.'s fund: Polymarket raises capital at a valuation of $21 billion

The investment fund in which Donald Trump Jr. is a partner is investing $300 million in the prediction platform Polymarket, according to a report in the Wall Street Journal. People familiar with the matter stated that the planned investment by 1789 Capital is part of a $1 billion capital raising round for Polymarket at a valuation of $21 billion.

Following the deal, 1789 Capital will become one of Polymarket's largest investors. In July, Intercontinental Exchange — the company's largest investor — disclosed a holding of $1.6 billion, representing 22% of the company. According to one source, 1789 Capital has already invested about $200 million in Polymarket. It made its first investment in the company before the presidential elections in November 2024.

That same year, Polymarket CEO Shayne Coplan was seen meeting with Trump Jr. and Omid Malik, the founder of 1789 Capital, during the Republican National Convention. Trump Jr. joined 1789 Capital as a partner after his father's victory in the elections. At that time, the company invested in Polymarket again.

Prediction platforms, led by Polymarket and Kalshi, while gaining popularity, are simultaneously facing criticism on the grounds that they effectively allow illegal gambling and encourage the use of insider information. There is also a dispute over which government body should regulate them.

The success of 1789 Capital has also drawn criticism, mainly from Democratic members of Congress. Last week, Congressman Jamie Raskin demanded a list of the company's investments, transcripts of conversations with the administration, and information about the decision to hire Trump Jr. The company reported a 200% return on the fund investing in Polymarket since the beginning of the year. Trump Jr. also served as an advisor to the competing platform, Kalshi, but the company claimed that he is not involved in discussions about regulation.