Polymarket Targets $21 Billion Valuation in 1789 Capital Funding Round

The proposed transaction, first reported by The Wall Street Journal, would solidify 1789 Capital’s position as one of Polymarket’s largest backers. While the deal remains unfinalized and subject to change, the influx of capital arrives as the platform navigates a complex regulatory environment. Polymarket currently operates under a CFTC designation for its U.S. exchange, yet it continues to face legal pushback from state regulators over the classification of its sports-based event contracts.

Scaling Amid Regulatory Scrutiny

Trump Jr. joined 1789 Capital as a partner following the 2024 election and serves as an adviser to the firm, as well as to rival platform Kalshi. This dual involvement has drawn attention from House Judiciary Committee Democrats, who are investigating the rapid growth of 1789 Capital and its portfolio companies. Despite the scrutiny, the firm maintains that its investment strategy is independent of political influence. Meanwhile, the Intercontinental Exchange (ICE) retains its status as Polymarket’s largest shareholder, holding approximately 22% of the company’s outstanding shares. The new funding, if completed, will provide the platform with additional resources to manage ongoing legal battles, expand its surveillance infrastructure for the 2026 midterm elections, and scale its international and domestic operations.