TLDR
- 1789 Capital, backed by Donald Trump Jr., invested double-digit millions in prediction market platform Polymarket
- Trump Jr. will join Polymarket’s advisory board while also serving as strategic advisor to rival platform Kalshi
- Polymarket was recently valued at over $1 billion and has processed $6 billion in trades during the first half of 2025
- The company acquired derivatives exchange QCEX for $112 million to gain CFTC licensing for potential U.S. market entry
- DOJ and CFTC have closed investigations into Polymarket following an FBI raid on CEO Shayne Coplan’s apartment last November
Donald Trump Jr.’s venture capital firm 1789 Capital has invested double-digit millions of dollars in prediction market platform Polymarket. Trump Jr. will also join the company’s advisory board as part of the investment deal.
The investment represents a major backing for the world’s largest prediction market platform. Polymarket was recently valued at over $1 billion by Founders Fund and has processed more than $6 billion in trades during 2025.
Americans currently cannot use Polymarket legally, but this may change soon. The company recently acquired derivatives exchange QCEX for $112 million, which provides CFTC licensing that could enable U.S. market entry.
1789 Capital founder Omeed Malik and Polymarket CEO Shayne Coplan began discussions about 18 months ago. The venture firm waited to invest until there was a clear legal pathway for U.S. operations.
The investment firm views Polymarket as a potential initial public offering candidate. 1789 Capital’s portfolio also includes defense contractor Anduril and SpaceX.
Regulatory Investigations Concluded
Polymarket announced that both the Department of Justice and CFTC have closed their investigations into the company. These probes included an FBI raid on CEO Shayne Coplan’s apartment last November.
The closure of federal investigations removes a major regulatory overhang for the platform. This development likely influenced 1789 Capital’s decision to proceed with the investment.
Prediction markets gained popularity during the 2024 presidential election when users correctly predicted Trump’s victory. Many traditional pollsters had forecasted a different outcome, highlighting prediction markets’ potential accuracy.
Polymarket offers trading on topics ranging from politics to popular culture. Current trending markets include Federal Reserve decisions and potential personnel changes in the Trump administration.
The platform allows users to bet on real-world events using cryptocurrency. Proponents argue this harnesses collective intelligence to create more accurate forecasts than traditional polling methods.
Trump Jr. Plays Both Sides
Trump Jr. serves as strategic advisor to Polymarket rival Kalshi in a paid position. This creates an unusual situation where he has relationships with competing prediction market platforms.
Both Polymarket and Kalshi gained attention during the 2024 election cycle for accurately predicting Trump’s victory. The platforms benefited from increased user engagement around political events.
Kalshi operates legally in the United States and has been expanding its sports betting offerings. The company recently self-certified touchdown prop markets for NFL games.
1789 Capital describes itself as “funding the next chapter of American exceptionalism” on its website. The firm was founded in 2022 by Omeed Malik and Chris Buskirk.
Trump Jr. joined 1789 Capital as a partner last year after expanding his business activities beyond the Trump Organization. His brothers Eric and Donald have also announced various new business ventures.
The investment comes as prediction markets face varying regulatory treatment across different states. Some jurisdictions have welcomed these platforms while others have issued cease-and-desist orders.
Pro sports leagues including the NFL have raised concerns about prediction market expansion into sports betting. However, the platforms face little legal risk under the current administration.
Polymarket’s ability to enter the U.S. market could transform the prediction market landscape and create new competition for existing platforms.
