Trump Jr’s 1789 Capital Leads $1 Billion Funding Round Valuing Polymarket at $21 Billion
September 1, 2026 – 10:57 am
Donald Trump Jr., a partner at 1789 Capital and strategic adviser to Kalshi, Polymarket’s principal competitor, is playing a significant role in the latter’s recent funding success.
1789 Capital is investing approximately $300 million in a $1 billion round that values Polymarket at a staggering $21 billion, as reported by Forbes.
While other investors in the round remain unnamed, 1789 Capital has a history with Polymarket, having previously invested $200 million when the company was valued at around $15 billion. This new investment brings their total commitment to approximately $500 million.
The significant increase in valuation, from $15 billion to $21 billion in a matter of months, highlights the rapid growth and potential of the prediction market sector.
A $15 billion valuation for Polymarket skyrockets to $21 billion, placing it on par with Kalshi, valued at about $22 billion in May. Two prediction market giants now total over $40 billion, showcasing the sector’s meteoric rise in just a few years.
Trump Jr.’s involvement at 1789 Capital encompasses new investment origination, capital raising, and strategic planning. His advisory position at Kalshi, established in 2025, adds another layer to this intricate arrangement.
Silence prevails from both Polymarket and 1789 Capital regarding this partnership, an unusual dynamic in a two-horse race.
Prediction markets, while seemingly straightforward, are classified as complex financial instruments. Their regulatory status remains a hotly debated topic:
- The Trump administration advocates for the Commodity Futures Trading Commission (CFTC) to be the sole regulator, while state officials disagree, citing ongoing litigation over sports wagering.
- Congress has proposed legislation barring CFTC-regulated platforms from offering sports contracts, potentially undermining the current high valuations based on volume in that sector.
Europe, notably Spain, has been less welcoming, blocking both Polymarket and Kalshi over missing gambling licenses, treating them as betting operators rather than financial exchanges. This discrepancy in regulations creates challenges for companies operating across different jurisdictions.
Trump Jr., however, has defended prediction markets as federally regulated instruments with robust oversight, a crucial argument for the industry’s legitimacy, considering his positions on both sides of the debate.