Donald Trump Jr.’s investment firm 1789 Capital is leading a new $1 billion funding round for Polymarket that values the prediction market operator at roughly $21 billion.
Polymarket Valuation Jumps as Trump Jr.’s Firm Invests $300M
1798 Capital is expected to contribute approximately $300 million in the latest fundraising round, reports citing people familiar with the transaction and a spokesperson for 1789 Capital said. The investment would add to the roughly $200 million the firm has invested in Polymarket so far, as reported by The New York Times.
That is a significant jump from the $15 billion valuation Polymarket was given earlier this year. The latest deal underscores rising investor interest in prediction markets, which have soared in popularity as platforms like Polymarket and Kalshi have drawn users and are increasingly chasing institutional traders.
Polymarket lets users trade contracts based on the results of political, economic, entertainment, and other events. The industry has also expanded into sports-related markets, with prediction platforms becoming the focus of an increasingly heated regulatory debate in the United States.
The latest investment also expands Donald Trump Jr.’s financial ties to the prediction market industry. Trump Jr. became a partner at 1789 Capital after his father returned to the White House and also took an advisory position with Polymarket. In 2025, he became an adviser at Kalshi and earned equity in the company worth more than $300,000.
1789 Capital’s initial investment in Polymarket was made before the 2024 Presidential election. Later on, it expanded its position in the company. The firm has also built a portfolio of a number of well-known private technology companies.
Trump Administration Favors CFTC Oversight as States Fight Prediction Markets
As the Trump administration’s stake in Polymarket grows, it has embraced prediction markets. Michael Selig, President Donald Trump’s pick to lead the Commodity Futures Trading Commission (CFTC), has supported industry expansion, while the federal regulator has pushed back against state efforts to impose their own restrictions. Trump has publicly voiced his support for prediction markets, saying the sector will grow under his administration.
The fresh funding comes amid ongoing legal disputes between prediction market operators and state authorities. Prediction markets have been sued by more than a dozen states, particularly those involving contracts for sporting events. State officials have said such products can be a form of gambling and therefore should be governed by state gaming laws.
The federal government has taken the opposite view, that the CFTC should be the primary regulator of the sector. A group of state attorneys general has challenged that interpretation, arguing that states still have the power to regulate sports betting in their states.
Donald Trump Jr.’s participation in the debate has also faced scrutiny. He recently discussed the regulatory environment with Republican state attorneys general and urged them to leave the regulation of prediction markets to federal authorities, according to reports.
1789 Capital has denied any conflicts of interest arising from Trump Jr.’s work at the firm. At the same time, Polymarket’s latest round of funding is a sign that investors still have a bullish outlook for the long-term growth of prediction markets, despite the regulatory uncertainty that looms over the industry.