Polymarket Attracts Investment from 1789 Capital with Trump Jr’s Support

Polymarket, a platform specializing in prediction markets, announced on October 17, 2023, that it has secured a significant investment from the venture capital firm 1789 Capital. This firm is backed by Donald Trump Jr., who has also joined Polymarket’s advisory board. While specific terms of the investment remain undisclosed, a source familiar with the situation informed Reuters that the funding is in the double-digit millions of dollars.

Prediction markets have gained considerable popularity in recent years among both retail traders and institutional investors. These markets offer a unique way to gauge sentiment on a variety of topics, including politics, economics, and global events. Proponents argue that event derivatives enable a more accurate forecasting of real-world outcomes by leveraging the collective intelligence of traders who have financial stakes in their predictions.

In a statement, Trump Jr. emphasized Polymarket’s role in providing a more direct reflection of public sentiment. “Polymarket cuts through media spin and so-called ‘expert’ opinion by letting people bet on what they actually believe will happen in the world,” he stated.

Growth of Prediction Markets

The popularity of prediction markets surged during the lead-up to the 2024 U.S. presidential election, with transaction volumes climbing into the billions. Founded in 2020 by CEO Shayne Coplan, Polymarket has been instrumental in popularizing event derivatives trading. The platform allows users to trade on various topics, ranging from political developments to cultural trends.

In the first half of 2023 alone, users of Polymarket placed trades worth $6 billion. Current trending markets on the platform include questions such as “Fed decision in September?” and “Will Trump try to fire Powell in 2025?”

The Role of 1789 Capital

Founded in 2022 by Omeed Malik and Chris Buskirk, 1789 Capital positions itself as a firm dedicated to “funding the next chapter of American exceptionalism.” With Trump Jr. as one of its partners, the firm is actively involved in a range of investments that align with the broader business strategies of the Trump family.

Over the past year, the Trump brothers, including Eric Trump, have announced numerous business ventures, taking on advisory roles on corporate boards and expanding their investments across various sectors. These ventures include financial services, golf courses, hotels, telecommunications, and cryptocurrency mining. The Trump family asserts that these initiatives reflect the policies and agenda of the U.S. presidency.

As Polymarket continues to expand its influence within the prediction market sector, the backing from 1789 Capital and the involvement of prominent figures such as Donald Trump Jr. may further enhance its position in this evolving industry.