Trump's son's investment fund has acquired a stake in Polymarket, valuing the "prediction market giant" at $21 billion.

A venture capital fund co-founded by Trump's son is significantly increasing its bets on the prediction market sector.

On August 31, the Wall Street Journal, citing sources familiar with the matter, reported that 1789 Capital is leading a funding round of approximately $1 billion for Polymarket, with the fund contributing about $300 million. This round values Polymarket at approximately $21 billion.

Previously, 1789 Capital had invested approximately $200 million in Polymarket, and this additional investment will make it one of the platform's largest shareholders.

Currently, Polymarket's largest shareholder is the Intercontinental Exchange (ICE). Data from July of this year shows that ICE holds $1.6 billion worth of shares in Polymarket, representing approximately 22% of the company's total share capital.

Following the announcement, attention has once again focused on the close relationship between prediction market platforms and Trump's political circle. Meanwhile, both Polymarket and its competitor Kalshi are facing legal challenges from regulators in multiple states and have attracted the attention of congressional Democrats.

The connections between politics and business are clear, and Trump's inner circle is deeply involved.

1789 Capital's ties with Polymarket date back to before the 2024 US presidential election.

At that time, Polymarket CEO Shayne Coplan sat at the same table as Donald Trump Jr. and 1789 Capital founder Omeed Malik at the Republican National Convention.

After the election and Trump's victory, Donald Trump Jr. officially joined 1789 Capital as a partner , and the fund subsequently invested in Polymarket again.

In early August of this year, Malik hosted a Republican fundraising event at his private residence in the Hamptons, New York. Vice President Vance attended, and Donald Trump Jr. and Coplan were also among the invitees.

In addition, in March of this year, Donald Trump Jr. delivered a keynote speech at a conference of the Republican Attorneys General Association, in which, according to attendees, he elaborated on the value of prediction markets and called on participants to support transferring regulatory power to the U.S. federal government rather than state governments.

Congressional Democrats raised questions, which were refuted in 1789.

1789 Capital’s rapid growth has alarmed Congressional Democrats.

According to reports, Maryland Democratic Representative Jamie Raskin sent a letter last week to the leadership of 1789 Capital, requesting the company to provide a list of investments, records of communications with the government, and information regarding the decision to hire Donald Trump Jr.

In response, 1789 Capital's legal counsel dismissed all conflict-of-interest allegations as "baseless political rhetoric" and denied them entirely.

According to reports citing sources familiar with the matter, 1789 Capital's growth equity fund, which invests in Polymarket, has achieved a return of 200% in the first three quarters of this year.

Regulatory battles intensify, with states and the federal government at odds.

The question of who should regulate prediction markets is becoming a focal point of contention among various parties.

Attorneys general from across the states have largely supported regulation of such platforms by state governments rather than the federal government, and more than ten states have already filed lawsuits against prediction market platforms such as Polymarket and Kalshi on this issue.

Both platforms have been controversial for allowing users to bet on sports events, with some regulatory agencies classifying this as gambling.

Furthermore, according to a previous report by The Wall Street Journal, both platforms had trading markets suspected of involving insider trading, and the number of users who lost money on the platforms was greater than the number of users who made profits.

Risk warning and disclaimerInvesting involves risk; please exercise caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Any investment decisions made based on this information are at your own risk.