Polymarket secures investment from Trump Jr-backed 1789 Capital
FILE PHOTO: Donald Trump Jr. speaks to media at Trump Tower in New York City, U.S., June 16, 2025. REUTERS/Eduardo Munoz/File Photo
Polymarket said on Tuesday it secured an investment from Donald Trump Jr-backed venture capital firm 1789 Capital, as prediction markets gain traction in the United States.
The Trump brothers, Eric and Donald, have announced a series of new business ventures over the past year, serving as advisers on corporate boards. They have also expanded their investments in a financial firm, golf courses, hotels, telecom and crypto miners - ventures they say reflect U.S. President Donald Trump's policies and agendas.
Polymarket did not disclose the terms of the investment by 1789 Capital, but a source familiar with the matter told Reuters it was in the double-digit millions of dollars. Trump Jr is also set to join Polymarket as a strategic adviser.
America-first investing as a strategy has broadly gained traction under the Trump administration, with fund managers rolling out products that emphasize U.S.-based assets and operations.
1789 Capital, launched in 2022 by Omeed Malik and Chris Buskirk, carries the tagline "funding the next chapter of American exceptionalism" on its website. It counts the eldest son of the U.S. president among its partners.
The Palm Beach, Florida-based firm has backed ventures aligned with conservative values and brands itself as an anti-ESG investor.
Malik, a former Bank of America executive, was a prominent donor to U.S. President Donald Trump's campaign.
BURGEONING POPULARITY
Event derivatives trading involves buying and selling contracts tied to specific outcomes and has surged in popularity since the 2024 U.S. presidential election.
While traditional media polls ahead of the election showed Democrat Kamala Harris having a narrow lead, prediction markets consistently priced in a greater probability of a Trump victory.
Proponents of prediction markets say event derivatives provide a more accurate gauge of real-world outcomes by harnessing the collective intelligence of traders with money riding on their predictions.
"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 in a statement.
Some trending markets currently on its platform include "Fed decision in September?" and "Will Trump try to fire Powell in 2025?"
Critics, on the other hand, say prediction markets are little more than gambling, raising concerns about speculation on sensitive topics such as elections and public policy.
Platforms such as Polymarket, once seen as experimental, now draw a wide mix of retail traders and institutional interest, signaling the sector has outgrown its nascent phase.
Last month, the company agreed to buy Commodity Futures Trading Commission-licensed derivatives exchange and clearinghouse QCEX for $112 million.
Its platform has seen trades worth about $6 billion in the first half of the year, Polymarket said.
"Prediction markets have completely changed the way people follow the news," Trump Jr said in a post on social media platform X.
He also serves as a strategic adviser to rival prediction market Kalshi.
