Here's a twist in the prediction market saga: 1789 Capital, the venture firm with Donald Trump Jr. on its roster, is reportedly leading a fresh funding round for Polymarket that could value the platform at a whopping $21 billion.
According to a New York Times report on Monday, Polymarket is looking to raise $1 billion, with 1789 Capital chipping in $300 million. The firm's spokesperson confirmed the news, and MarketDash has reached out for additional comment, though Polymarket has yet to respond.
This isn't 1789 Capital's first rodeo with Polymarket. The firm previously invested about $200 million when the platform was valued at roughly $15 billion. Now, with this new round, Polymarket is nearly level with its main competitor, Kalshi, which snagged a $22 billion valuation back in May.
1789 Capital, which describes itself as an investor in "great American companies," lists Trump Jr. as a partner focused on new investment origination, capital raising, and strategy. The firm has reportedly seen returns of around 200%, largely thanks to an early bet on Polymarket when it was valued at just $300 million.
Here's where it gets interesting: Trump Jr. also serves as a strategic adviser to Kalshi. So he's got a foot in both camps, which adds a layer of intrigue to the whole setup.
These investments come at a time when the Trump administration is throwing its weight behind the prediction market industry. President Donald Trump has insisted that the CFTC oversee platforms like Kalshi and Polymarket, and CFTC Chairman Mike Selig has vowed to defend the agency's "exclusive jurisdiction."
The CFTC has been busy, filing lawsuits against Arizona, Connecticut, Illinois, New York, and Wisconsin, and securing a preliminary injunction against state regulation of CFTC-regulated prediction markets in Arizona. The battle is heating up, with Sen. Adam Schiff (D-Calif.) and Sen. John Curtis (R-Utah) pushing legislation to ban CFTC-regulated platforms from offering sports-related contracts.
So, as Polymarket inches closer to Kalshi's valuation, the regulatory landscape remains a wildcard. Will the CFTC's stance hold? Will Congress step in? Only time will tell, but for now, the prediction market space is buzzing with activity and big money.
