Trump Jr.-Backed 1789 Capital to Add About $300M to…

Donald Trump Jr.-backed venture firm 1789 Capital is leading a new $1 billion funding round for Polymarket that values the prediction-market operator at $21 billion after the investment. 1789 Capital plans to contribute approximately $300 million to the round, spokesperson Alexa Henning confirmed Monday.The investment comes on top of roughly $200 million that 1789 previously put into Polymarket, potentially bringing the firm's cumulative investment to approximately $500 million. Polymarket was valued at around $15 billion following an April financing involving investors including D.E. Shaw and G Squared.The latest round therefore represents a 40% valuation increase in only several months and makes 1789 one of the platform's largest financial backers. The remaining investors participating in the $1 billion round have not been publicly identified.

Polymarket's Valuation Climbs Toward Kalshi

Polymarket's latest valuation underscores how rapidly capital has entered the prediction-market sector. The company was valued at approximately $1.2 billion when 1789 made its initial investment in 2025. Intercontinental Exchange, owner of the New York Stock Exchange, subsequently agreed to invest up to $2 billion in Polymarket in a transaction initially valuing the company at approximately $8 billion before the investment.ICE completed an additional $600 million cash investment in March 2026. By April, Polymarket's valuation had climbed to approximately $15 billion. The new financing would push it to $21 billion.That brings Polymarket close to rival Kalshi, which raised capital at a $22 billion valuation in May. The two companies have become increasingly aggressive competitors as prediction markets expand beyond politics into sports, economics, entertainment and financial events.Polymarket is simultaneously targeting institutional traders. The company is seeking regulatory approval to introduce margin trading in the United States, which could allow sophisticated users to deploy capital more efficiently rather than fully collateralizing every position.

Trump Jr.'s Prediction-Market Ties Draw Scrutiny

The financing also strengthens Donald Trump Jr.'s ties to an industry affected by federal regulatory policy. Trump Jr. joined 1789 Capital as a partner following the 2024 presidential election and subsequently joined Polymarket's advisory board after the venture firm invested in the company.He is separately a strategic adviser to rival Kalshi and has received equity in that company valued at more than $300,000. President Donald Trump's administration has adopted a supportive position toward prediction markets. CFTC Chairman Michael Selig has publicly backed the industry's development, while the federal regulator has challenged attempts by individual states to restrict federally regulated event contracts.That environment has generated political scrutiny over the Trump family's financial connections to the sector. Democratic lawmakers have questioned whether investments by 1789 Capital create potential conflicts involving companies affected by federal policy.1789 has rejected allegations that its investment performance results from political influence. Trump Jr. has also said he invests as a private citizen and holds no policy-making position or role in the administration. The new financing does not itself establish any improper connection between government policy and 1789's investment.Its economic significance is nevertheless substantial. 1789 reportedly managed only several hundred million dollars approximately two years ago but now oversees more than $3 billion, with investments spanning companies including SpaceX, Anduril, Cerebras and Reflection AI.Polymarket could become one of its most valuable positions. If 1789 ultimately invests approximately $500 million across its Polymarket transactions, its exposure would be substantial even for a multibillion-dollar venture firm.For Polymarket, the $21 billion valuation also demonstrates how dramatically investors' assessment of the company has changed. The platform spent years effectively excluded from the U.S. market following a CFTC enforcement action. It is now raising $1 billion at a valuation approaching its largest competitor while pursuing regulated U.S. expansion and deeper institutional participation.The round has not yet been announced as completed, meaning final investment amounts and participating investors could still change. But if it closes on the reported terms, Polymarket will have added another billion dollars of capital while increasing its private valuation by roughly $6 billion in only a few months.