TLDR
- Donald Trump Jr.’s 1789 Capital is leading a $1 billion funding round in Polymarket
- The round values Polymarket at $21 billion, up 40% from its previous $15 billion valuation
- 1789 Capital has invested around $200 million previously and plans to add $300 million more
- ICE, owner of the New York Stock Exchange, remains Polymarket’s largest shareholder at roughly 22%
- Democratic lawmakers are investigating 1789 Capital’s growth and its ties to federally regulated industries
Polymarket is in talks to raise $1 billion at a $21 billion valuation, with Donald Trump Jr.’s venture capital firm 1789 Capital leading the round.
Trump Jr.-Backed 1789 Capital to Add About $300M to Polymarket at $21B Valuation
The Wall Street Journal reported that 1789 Capital, where Donald Trump Jr. is a partner, plans to invest about $300 million more in prediction market platform Polymarket. The investment is part of a… pic.twitter.com/sAvdcxfS2D
— Wu Blockchain (@WuBlockchain) August 31, 2026
1789 Capital plans to contribute around $300 million. That follows roughly $200 million the firm had already put into the platform, giving it about $500 million in total exposure if the deal closes.
The valuation marks a 40% jump from Polymarket’s previous value of around $15 billion, set during a round completed in April 2026.
The Wall Street Journal first reported the financing plans on August 31. A spokesperson for 1789 Capital confirmed the planned investment and valuation separately. The round has not been officially closed, and final terms could still change.
Who Else Is Backing Polymarket
ICE, the company that owns the New York Stock Exchange, remains Polymarket’s largest investor. Its holdings represent about 22% of the company’s outstanding shares.
ICE first announced an investment agreement of up to $2 billion in October 2025, initially valuing Polymarket at around $8 billion. It completed a further $600 million cash investment in March 2026.
An SEC filing showed that ICE recorded a $389 million fair-value gain on its Polymarket stake in the first quarter of 2026. That gain came from a rise in the price of Polymarket shares, not cash income from the platform.
Trump Jr. joined Polymarket’s advisory board after 1789 Capital made its initial investment. He is also an adviser to rival prediction market Kalshi, where he received shares worth more than $300,000 in 2025.
Legal Battles and U.S. Expansion
Polymarket previously blocked U.S. users under a 2022 settlement with the Commodity Futures Trading Commission. The company paid a $1.4 million civil penalty at the time.
It has since built a regulated U.S. business through its acquisition of QCEX. The CFTC now lists QCX LLC, operating as Polymarket U.S., as a designated contract market.
Polymarket has said its surveillance systems are ready to support trading around the 2026 midterm elections. World Cup contracts earlier generated billions in trading volume, showing sports have become a growing part of the platform’s activity.
State-level legal challenges remain. Some regulators argue that event contracts tied to sports amount to illegal gambling. Courts have reached different rulings across states, creating a fragmented legal landscape.
The new funding would give Polymarket more capital for legal costs, compliance, technology, and competition with Kalshi.
Democratic lawmakers on the House Judiciary Committee are investigating 1789 Capital’s growth and its investments in companies tied to federal policy. The investigation does not establish wrongdoing. 1789 Capital has described the scrutiny as politically motivated.
Polymarket has no publicly traded stock and has not released audited financial statements.
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