Donald Trump Jr.’s partnering firm 1789 Capital is investing US$300 million (HK$2.34 billion) into Polymarket, raising the prediction platform’s valuation to US$21 billion, The Wall Street Journal reported, citing people familiar with the matter.
The investment is part of Polymarket’s plan to raise US$1 billion through funding rounds, a spokesperson for 1789 Capital said. The report added that 1789 Capital has previously invested US$200 million into Polymarket.
Through the third quarter, the firm's growth equity fund, which includes the Polymarket investment, has achieved 200 percent returns, the people said.
The investment fund will become one of Polymarket’s largest backers, following Intercontinental Exchange, which owns 22 percent of the company’s outstanding shares – a US$1.6 billion stake.
Polymarket was valued at around US$15 billion in its April financing round, with D.E. Shaw and G Squared joining as new investors.
However, Polymarket’s growth has lagged behind its major competitor, Kalshi, which completed a financing round in May at a valuation of US$22 billion.
1789 Capital made its initial investment in Polymarket ahead of the 2024 election. During the Republican National Convention, Polymarket chief executive Shayne Coplan was spotted sitting at a table with Trump Jr. and Omeed Malik, the founder of 1789 Capital. Trump Jr. later joined the firm as a partner after his father, Donald Trump, won the election.
In March, Trump Jr. urged state attorneys general to leave prediction market regulation to the federal government, but the officials overwhelmingly favor state-level control – a stance backed by over a dozen states currently fighting the issue in court.
