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$1B Round at $21B
Donald Trump Jr.-linked venture fund 1789 Capital is leading a new Polymarket funding round that would value the prediction market operator at $21 billion, with the round reported as $1 billion in total funding.
“Polymarket will raise $1 billion in the funding round, with 1789 Capital investing around $300 million.”
Forbes, citing Bloomberg, reported that Polymarket will raise $1 billion and that 1789 Capital would invest around $300 million, after 1789 Capital previously made a “strategic investment” in Polymarket last year.
The New York Times said the spokeswoman Alexa Henning told reporters that 1789 Capital would invest around $300 million as Polymarket plans to raise $1 billion, bringing the valuation to $21 billion from $15 billion.
The same New York Times account said 1789 Capital previously invested about $200 million in Polymarket, and that Donald Trump Jr. joined Kalshi as an adviser last year and received shares worth more than $300,000.
In a separate report, TechCrunch said Polymarket raised $300 million from 1789 Capital as part of a new funding round totaling around $1 billion, citing the Wall Street Journal and unnamed sources.
Trump Jr. and Oversight
The funding push comes as the Trump administration and federal regulators argue for a national approach to prediction-market oversight, with The New York Times describing Michael Selig, whom President Trump appointed to lead the Commodity Futures Trading Commission, as having spoken enthusiastically about the companies and sued states that tried to regulate them.
The New York Times also reported that President Trump declared on Truth Social that prediction markets would “thrive” under his leadership and said Mr. Selig was “respected by all.”
TechCrunch said the Trump administration has argued that the sole regulator of the industry should be the Commodity Futures Trading Commission (CFTC), not state governments, and that the CFTC has sued at least nine states over their attempts to regulate the industry.
TechCrunch further reported that a coalition of 44 state attorneys general signed a letter arguing that the CFTC does not have the authority to regulate sports-related wagers on prediction sites.
In the same TechCrunch account, it said Donald Trump Jr. described prediction sites as a tool “overseen by federal officials, not state attorneys general” at an event involving conservative state attorneys general.
Regulatory Scrutiny and Stakes
Beyond the funding numbers, Polymarket’s U.S. access and regulatory posture remain central to the story, with The New York Times noting that Michael Selig oversees prediction markets and that the CFTC has sued states that tried to regulate them.
“a 2022 CFTC settlement forced it to block American traders and pay a $1.4 million fine”
The Cryptonomist said Polymarket returned to U.S. users by acquiring the CFTC-licensed exchange QCEX after a 2022 CFTC settlement forced it to block American traders and pay a $1.4 million fine.
The Cryptonomist also said state regulators and House Judiciary Committee Democrats are both scrutinizing the platform, while adding that the congressional inquiry into 1789 Capital has not produced any findings of wrongdoing.
TechCrunch reported that there are at least 20 states engaged in litigation against prediction sites over sports wagers, and that the CFTC has frequently sought to defend the prediction industry from state regulation.
In parallel, Forbes reported that the increased push by states to regulate betting on these platforms is part of the context for the $1 billion round, as Polymarket’s valuation rises to $21 billion.