Donald Trump Jr. is out at Kalshi after his venture capital firm’s growing investment in rival Polymarket ended an unusual arrangement in which he advised both prediction market giants.
Kalshi confirmed Thursday that the departure was mutual, Reuters reported. The company said discussions began in August, after his firm, 1789 Capital, led Polymarket’s latest funding round.
“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer,” a Kalshi spokesperson said.
A Foot in Both Camps
Trump Jr. joined Kalshi as a strategic adviser in January 2025. Seven months later, he joined Polymarket’s advisory board as his investment firm backed the rival platform.
At the time, his spokesman insisted the new role wouldn’t affect the existing arrangement.
“This doesn’t change anything regarding Don’s role with Kalshi,” the spokesman told Front Office Sports.
But the firm’s investment grew substantially.
1789 Capital is contributing approximately $300 million to Polymarket’s latest $1 billion funding round, adding to roughly $200 million it previously invested, a firm spokesperson confirmed.
That would bring its total investment to approximately $500 million if the latest round closes as planned.
Kalshi Pulls Ahead
Kalshi raised $1 billion in October at a $40 billion valuation, nearly twice the $21 billion valuation attached to Polymarket’s latest funding round.
Kalshi also leads its rival in monthly trading volume, while Polymarket has been cutting jobs and contractor agreements as it reorganizes ahead of a potential 2027 IPO.
Polymarket counts New York Stock Exchange parent Intercontinental Exchange Inc. (NYSE:ICE) among its biggest backers.
ICE invested $1.6 billion in Polymarket preferred shares, which carried a value of approximately $2 billion as of Sept. 30.
What Happens to His Kalshi Stake?
Trump Jr. received more than $300,000 in Kalshi shares when he joined, without investing his own money, the Financial Times reported.
The shares have multiplied in value, according to the New York Times, even as subsequent fundraising diluted his percentage ownership.
Kalshi was valued at $787 million before Trump Jr. joined, according to PitchBook data cited by TechCrunch in October 2024. Its latest $40 billion valuation is roughly 50 times higher.
His advisory contract is over. Whether he still owns a piece of Polymarket’s biggest rival remains unclear.
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