Trump Jr.-linked fund leads Polymarket's $1B raise at $21B valuation

Donald Trump Jr.-linked investment firm 1789 Capital is reportedly putting about $300 million into Polymarket, Cointelegraph reports, as part of a $1 billion round that would value the prediction-market platform at $21 billion.

• 1789 Capital's stake would bring its total Polymarket investment to about $500 million, one of the platform's largest backers
• The $21 billion valuation sits just below rival Kalshi's $22 billion
• Polymarket was seeking $400 million at a $15 billion valuation as recently as April
• ICE remains the largest disclosed investor: $1.6 billion in preferred shares, about 22% of outstanding shares, 14% fully diluted
• Neither 1789 Capital nor Polymarket has commented; the report traces to sources who spoke to the Wall Street Journal

The jump in ask price is steep. Polymarket was reportedly shopping a $400 million raise at a $15 billion valuation back in April, five months ago. Landing a $1 billion round at $21 billion means the raise size more than doubled and the valuation climbed roughly 40% in that stretch, alongside a broader run in crypto and prediction-market interest this year.

1789 Capital, where Trump Jr. is a partner, would become one of Polymarket's most prominent backers if the round closes as reported, sitting behind ICE, the parent of the New York Stock Exchange. ICE disclosed $1.6 billion in Polymarket preferred shares in a July 30 regulatory filing, a stake with a carrying value of roughly $2 billion as of June 30 and representing 22% of outstanding shares, or 14% fully diluted. Cointelegraph said it approached both 1789 Capital and Polymarket for comment on the new round; neither had responded by publication.

The raise comes as prediction markets face mounting regulatory pressure on multiple fronts. JPMorgan ended its banking relationship with Polymarket in mid-August over regulatory concerns, though the bank said it would still consider an underwriting role if Polymarket goes public. More than a dozen US states have sued Polymarket, Kalshi, or both over sports-event contracts, and New York has separately argued in court that the platforms are running unlicensed gambling operations. Several countries have blocked or restricted access outright.

None of that appears to be slowing the money. A platform two federal regulators are actively suing, and that lost a major bank relationship weeks ago, is reportedly about to close a round that values it above $20 billion anyway. Investors betting on prediction markets are, in effect, betting the legal fights end in Polymarket's favor.

This article is for informational purposes only and does not constitute investment advice.