1789 Capital leads Polymarket’s $1 billion funding round with $300 million investment
1789 Capital to invest $300 million in Polymarket
1789 Capital, an investment firm linked to Donald Trump Jr., will reportedly lead a $1 billion funding round for Polymarket, a blockchain-based prediction market where users bet on real-world events. The firm plans to invest about $300 million, valuing Polymarket at $21 billion, according to people familiar with the matter cited by the Wall Street Journal.
This investment would bring 1789 Capital’s total stake in Polymarket to roughly $500 million, making it one of the platform’s largest backers.
Key numbers
- 1789 Capital’s new investment: $300 million
- Total funding round: $1 billion
- Polymarket’s reported valuation: $21 billion
- 1789 Capital’s total investment in Polymarket after this round: $500 million
- ICE’s disclosed investment in Polymarket: $1.6 billion (22% of outstanding shares as of June 30)
Regulatory and market context
Prediction markets like Polymarket and its competitor Kalshi are facing growing regulatory scrutiny. More than a dozen U.S. states have taken legal action against these platforms over sports event contracts. Several countries have also blocked or restricted access to Polymarket, citing concerns such as gambling.
In August, JPMorgan Chase reportedly ended its banking relationship with Polymarket due to regulatory concerns but said it remains open to underwriting a potential public offering.
Earlier this year, Polymarket was reportedly seeking $400 million in fresh capital at a $15 billion valuation, below Kalshi’s $22 billion valuation.
What is confirmed
- 1789 Capital, where Donald Trump Jr. is a partner, is leading a $1 billion funding round for Polymarket.
- The firm will invest $300 million, bringing its total investment in Polymarket to $500 million.
- The round values Polymarket at $21 billion.
- ICE remains Polymarket’s largest disclosed investor, with a $1.6 billion stake as of June 30.
- Polymarket and 1789 Capital have not publicly confirmed the investment.
What is still unclear
- Whether the funding round will be finalized as reported.
- How the new funds will be used by Polymarket.
- The impact of ongoing regulatory challenges on the investment or Polymarket’s operations.
Sources
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