- Kalshi has ended Donald Trump Jr.’s advisory role after his venture capital firm invested heavily in rival platform Polymarket.
- His firm, 1789 Capital, is leading a $1 billion funding round for Polymarket, which could value the company at $21 billion.
- Kalshi says the decision was based on a business conflict and had nothing to do with political considerations.
Investment In Rival Platform Sees Kalshi Drop Trump Jr As Advisor
Prediction market platform Kalshi has dropped Donald Trump Jr as an advisor following his venture capital firm increasing investment in rival platform Polymarket. This comes after Trump Jr’s firm 1789 Capital took the lead role in a $1 billion round for Polymarket which will value the company to around $21 billion. They will be investing around $300 million into the firm.
A spokesperson for Kalshi confirmed to Reuters that the relationship had been mutually agreed to drop. They explained that discussions had begun in August after Trump Jr’s firm got heavily involved in the round.
“We made the decision because there was significant investment in a competing business.”
Trump Jr Became A Strategic Advisor
Donald Trump Jr became a strategic advisor to Kalshi in January 2025, drawing attention due to his political ties and the increasing prominence of prediction markets in the US.
He was given equity in the company which was worth around $300,000 at the time, according to a previous report from the Financial Times.
Prediction markets allow users to buy and sell contracts around potential outcomes of future events. This can range from elections to economic and sports outcomes. Due to the increasing popularity of these platforms, companies are keen to attract investors and grow their business.
Kalshi and Polymarket are some of the high-profile names in this area, however they are also competing for users, investment and increased market share.
Kalshi insists politics had nothing to do with dropping Trump Jr’s advisor role, instead it was due to his firm investing in a direct competitor. However, according to the report from Reuters, two sources familiar with the situation said that some members of Kalshi had expressed concerns around the potential impact of a Democratic win in both houses of Congress in the US midterms.
This could impact the regulation surrounding prediction market companies. Prediction markets have drawn increasing attention from lawmakers and regulators as there are questions around how to categorize and regulate the contracts.
Overall, this demonstrates the challenges that can come up in business when an advisor gets involved financially with a competitor. However, the large investment into Polymarket does demonstrate that investors believe there is great potential for growth in the prediction market industry.
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