An investment fund linked to Donald Trump Jr. is investing $300 million into popular prediction platform company Polymarket, The Wall Street Journal reported.
Trump Jr. is a partner and key shareholder at 1789 Capital, which is providing the investment as part of a $1 billion round of funding.
Key Takeaways
- 1789 Capital had already invested a reported $200 million into Polymarket.
- Trump Jr. joined Polymarket as an advisor last month.
- Polymarket has fallen further behind Kalshi in the ongoing competition for market share.
Polymarket’s latest fundraising values the company at $21 billion, a 40% increase from its $15 billion valuation in April.
Previously, 1789 made a “strategic investment” in Polymarket, which is Kalshi’s leading rival in the race to dominate the prediction industry. It was later revealed that the investment reached $200 million.
The initial injection was co-announced with the news that Trump Jr. had joined Polymarket’s advisory board to help with the company’s marketing. A press release issued last August said that Trump Jr. was bringing “decades of experience” to the “largest prediction market in the world.”
“Polymarket cuts through media spin and so-called 'expert' opinion by letting people bet on what they actually believe will happen in the world,” Trump Jr. said last August. “I am pleased that 1789 Capital is investing in Polymarket and am honored to join the company's advisory board.”
The Wall Street Journal reported that 1789 Capital’s latest contribution makes it one of Polymarket’s largest investors.
Kalshi, meanwhile, raised a similar $1 billion in funding at a $22 billion valuation in April. Investors included Sequoia Capital, Andreessen Horowitz and Morgan Stanley, among others.
Enjoying Covers content? Add us as a preferred source on your Google account
Trump Jr. pushes for prediction markets
Neither 1789 Capital nor Polymarket released an announcement confirming the planned investment. However, comments from last year’s investment illustrated the venture fund’s thinking in backing the prediction market operator.
“1789 Capital looks to invest in companies that are entrepreneurial, innovative, and demonstrate great potential for growth. Polymarket meets each of these criteria,” said Omeed Malik, Founder of 1789 Capital. “Polymarket stands at the intersection of free expression and financial innovation by empowering individuals with real-time truth in a world clouded by noise, and we are proud to support its vision.”
News of the investment comes a week after The New York Times reported that Trump Jr. asked Republican state attorneys general not to file lawsuits against prediction markets back in March.
According to the report, which cited four people as sources, Trump Jr. said at a retreat in New Orleans, Louisiana, that state gaming regulators who sought enforcement against prediction platforms were being misled by gambling companies who wanted to keep hold of their “monopolies.”
“Don was invited by RAGA to speak at their conference and simply responded to a single question he was asked by the moderator about his opinion on prediction market regulation,” a spokesperson for Trump said. “Despite the dishonest implications from the New York Times, the back and forth lasted approximately one minute of the hour long Q and A and was not a focus of the event.”
Prediction market battles unfolding
Although Polymarket has just about caught pace with Kalshi, that could soon change. The Information reported in early August that Kalshi was seeking another round of funding at a $40 billion valuation after it had surpassed $4 billion in annualized revenue.
Kalshi has also grown its lead in market share over Polymarket in recent months. According to data aggregator DefiLlama, Kalshi’s cash trading volume was 2.2 times larger than Polymarket’s in June, 3.4 times larger in July, and 2.9 times larger halfway in August.
Recent prediction market news was dominated by a crucial decision in court last week.
The U.S. Court of Appeals for the Ninth Circuit in Nevada ruled that state gaming officials could regulate sports event contracts. The decision gives credence to regulators in other states that have consistently argued that prediction platforms are not exempt from local regulations just because they are licensed by the Commodity Futures Trading Commission, which is sure to inspire more legal battles across the country.
