Scoop: Donald Trump Jr.'s VC firm bets on Polymarket
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The world's largest predictions market has received an investment from Donald Trump Jr.'s venture capital fund, Axios has learned exclusively.
Why it matters: This new form of betting faces little legal risk under Trump 2.0, even as pro sports leagues like the NFL raise alarms.
Driving the news: 1789 Capital, which Trump Jr. joined last year as a partner, invested double-digit millions of dollars into Polymarket, which recently was valued north of $1 billion by Founders Fund.
- Trump Jr. also will join Polymarket's advisory board.
Catch up quick: Americans aren't allowed to use Polymarket, which claims to have hosted over $6 billion in predictions so far this year, but that may soon change.
- The company recently paid $112 million to acquire derivatives exchange QCEX, which means that it also acquired a CFTC license.
- Polymarket also announced that the DOJ and CFTC have both closed investigations into the company — probes that had included an FBI raid last November on CEO Shayne Coplan's apartment.
Behind the scenes: A source familiar with the situation says that 1789 Capital founder Omeed Malik and Coplan first began talking around 18 months ago, but that the firm waited to invest until there was a clear legal path for U.S. market entry.
- 1789, whose portfolio also includes Anduril and SpaceX, views Polymarket as an eventual IPO candidate.
The intrigue: Trump Jr. earlier this year joined Polymarket rival Kalshi as a strategic advisor.
- The Kalshi role is a paid position, not reflective of an investment. At this moment, he seems to have a foot in both camps.
- Both Polymarket and Kalshi gained national attention last year when their users defied many traditional pollsters by predicting a Trump election victory.
