- Published on
Trump Jr.-linked 1789 Capital leads Polymarket’s $1B raise
- Authors
- Name
- DeepHorus
Donald Trump Jr.-linked investment firm 1789 Capital is set to lead a massive $1 billion funding round for blockchain prediction market Polymarket, valuing the platform at $21 billion. According to a Wall Street Journal report, 1789 Capital, where Trump Jr. is a partner, will contribute approximately $300 million to the round. This significant investment would bring 1789 Capital's total stake in Polymarket to roughly $500 million, establishing it as one of the platform's largest backers.
The news comes as Polymarket continues to navigate a complex regulatory landscape. The platform, which allows users to bet on the outcomes of real-world events, has attracted scrutiny from authorities in the United States and internationally. More than a dozen US states have taken legal action against Polymarket and its main competitor, Kalshi, over sports event contracts, while several foreign countries have blocked or restricted access to the platform.
The proposed $21 billion valuation places Polymarket just below Kalshi's $22 billion mark. The funding round represents a significant increase from earlier discussions in April, when Polymarket was reportedly seeking $400 million at a potential $15 billion valuation. This rapid growth underscores the high investor interest in the prediction market sector despite regulatory challenges.
Polymarket's current largest disclosed investor is Intercontinental Exchange (ICE). A July 30 filing revealed ICE's combined $1.6 billion investment in Polymarket preferred shares, which had a carrying value of about $2 billion as of June 30. This stake represents approximately 22% of outstanding shares, or 14% on a fully diluted basis.
The investment activity persists even as some financial institutions distance themselves over regulatory concerns. JPMorgan Chase reportedly ended its banking relationship with Polymarket on August 14 due to such worries. However, the bank has indicated it would remain open to a potential underwriting role should Polymarket pursue a public offering in the future.
The massive new funding round signals strong conviction from major investors like 1789 Capital in Polymarket's long-term potential. As the platform scales with this new capital, it will need to continue addressing regulatory hurdles across multiple jurisdictions. The outcome of these regulatory challenges will be crucial in determining the future growth trajectory of the entire prediction market industry.
