(Reuters) -Prediction markets platform Polymarket said on Tuesday it has secured an investment from venture capital firm 1789 Capital and that Donald Trump Jr, son of the U.S. president, has joined its advisory board.
Polymarket did not disclose the terms of the investment by 1789 Capital, but a source familiar with the matter told Reuters it was in the double-digit millions of dollars.
Prediction markets have gained traction in recent years, drawing both retail traders and prominent investors who see them as an alternative way to gauge sentiment on politics, economics and global events.
Proponents of prediction markets argue event derivatives offer a more accurate way to forecast real-world outcomes by harnessing the collective intelligence of traders with financial stakes in their predictions.
"Polymarket cuts through media spin and so-called 'expert' opinion by letting people bet on what they actually believewill happen in the world," Trump Jr said in a statement.
The contracts, which critics liken to betting, surged in popularity during the 2024 U.S. presidential election, with transactions climbing into the billions.
Founded in 2020 by CEO Shayne Coplan, Polymarket has helped popularize event derivatives trading. The company, which offers prediction-based trading on topics ranging from politics to popular culture, said users have placed $6 billion worth of trades in the first half of the year.
Some trending markets currently on its platform include "Fed decision in September?" and "Will Trump try to fire Powell in 2025?"
1789 Capital, founded in 2022 by Omeed Malik and Chris Buskirk, counts Trump Jr among its partners. On its website, the investment firm describes itself as "funding the next chapter of American exceptionalism".
The Trump brothers, Eric and Donald, have announced a series of new business ventures over the past year, serving as advisers on corporate boards and expanding their investments in a financial firm, golf courses, hotels, telecom and crypto miners - ventures they say reflect the president's policies and agenda.
(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
