A venture capital firm named 1789 Capital has a management scale of only $150 million in 2024 but can "inflate" to over $3 billion by the summer of 2026.

Written by: Zen, PANews

A venture capital firm named 1789 Capital has a management scale of only $150 million in 2024 but can "inflate" to over $3 billion by the summer of 2026. Within less than two years, the scale has expanded more than 20 times.

Now, it is negotiating to raise $3 billion for its second growth fund and has already raised about $2 billion from existing investors.

This rate of growth is astonishing, but when you know that the partner of this fund is Donald Trump Jr. (hereinafter referred to as "Little Trump"), it all suddenly makes sense, prompting a knowing smile.

From Campaigner to Fund Partner

In the summer of 2018, at a barbecue party in the Hamptons, Little Trump's then-girlfriend Kimberly Guilfoyle introduced him to banker Omeed Malik.

At that time, Trump was spending his first term in the White House, while Little Trump, along with his brother Eric, was managing the family real estate business handed down by their father. But since Trump decided to run for the presidency, Little Trump's political activities have increased significantly.

As early as the 2016 election, the 39-year-old Little Trump was sent to small towns and rural areas to rally voters for his father. In 2018, he attended over 70 events for Republican candidates and state party organizations. Through countless speeches, canvassing, and fundraising activities, he gradually built his own political network and gained a number of conservative supporters.

Malik was one such supporter; the former Democrat shared a common political language with Little Trump: in October 2020, the two co-signed a piece on the conservative website "Daily Caller," criticizing American companies' reliance on the Chinese market and advocating for businesses to cooperate with government national security goals to regain control of the supply chain.

On the eve of the Capitol riot in early 2021, Little Trump co-hosted a "Save America" rally with his father. He made a strong statement at the event, threatening to challenge Republican members of Congress in the primaries if they did not support his father, even declaring, "This is no longer their Republican Party; this is Donald Trump's Republican Party!"

By 2024, Little Trump was deeply involved in his father's campaign for a return to the White House. Wherever his father could not be present, his son stepped in. While Trump was attending a civil fraud trial in New York, Little Trump went to a Machine Shed restaurant in Urbandale, Iowa, to campaign for him.

On the issue of vice-presidential candidates, Little Trump actively lobbied his father to choose his friend, Ohio Senator J.D. Vance. On election night, Little Trump jokingly described his involvement during an interview: "I have invested 10,000% of my political capital."

U.S. Vice President J.D. Vance (left) with Little Trump (right)

In November 2024, the results of the presidential election were announced, with Trump winning a triumphant return to the White House. On the evening of November 10, the first weekend after his father's election victory, Little Trump attended a fundraising event for Rockbridge in Las Vegas, which gathered Trump campaign assistants and financial backers. In front of hundreds of political donors, Little Trump announced that he would join 1789 Capital.

As his father returned to the center of power, Little Trump chose the title of "Fund Partner" for his new identity. At 1789, Little Trump is responsible for seeking investment opportunities, raising capital, and formulating strategy. The official website emphasizes that his extensive connections between businesses and investors can expand the firm's network.

1789 Capital was founded in 2022 by Malik, Christopher Baskin, and significant Republican donor Rebekah Mercer, and publicly announced its launch in 2023. The company's name comes from the year the Bill of Rights was proposed, focusing on products and companies related to conservative values, and prides itself on being anti-ESG (Environmental, Social, and Governance).

With a grand narrative, its investment philosophy is also referred to as "patriotic capitalism." Manufacturing return, supply chain security, and businesses serving conservative consumers are all target areas for its funding.

This investment firm, previously obscure before Little Trump's joining, had limited funding and investment opportunities in its early days. In 2023 and 2024, it invested in five companies, with one of its earlier well-known investments being part of a $15 million financing for conservative host Tucker Carlson's new media company.

As Trump returned to the White House, Little Trump made a strong entrance, leveraging a network intertwined with politics and business, pushing 1789 into broad and controversial fields.

Transforming Political and Business Networks into a Portfolio

On the evening of June 13, 2025, in Georgetown, Washington, a private club called The Executive Branch co-founded by Little Trump and Malik held its opening party. The Executive Branch, translated directly, means "executive department."

According to the New York Post, founding members paid an entry fee of as high as $500,000. Treasury Secretary Janet Yellen, Commerce Secretary Gina Raimondo, and NVIDIA founder Jensen Huang were among the guests. Photography was prohibited inside, and phone cameras needed to be covered with stickers.

The Executive Branch clearly offers more than just a venue for toasting and celebration. When government officials, tech entrepreneurs, and political donors meet in the same space, a resource that is difficult to price becomes packaged as an expensive commercial service. Although this club operates independently of 1789, it shares the top-tier relationship network.

The private club’s doors extend far beyond the boundaries of Little Trump and Malik's political and business interactions. During the Trump campaign, Malik met Elon Musk, and subsequently, 1789 participated in investments in SpaceX, xAI, and Neuralink. In March 2025, the Financial Times reported that 1789's investments in xAI and SpaceX exceeded $50 million.

In less than two years, 1789 achieved rocket-speed growth — scaling from approximately $150 million in assets in 2024 to over $3 billion by the summer of 2026, expanding its size more than 20 times.

According to an insider, as of June 30 of this year, the return rate for its main investment fund is about 200%. Although 1789's investment cycle is still in the early stages, these returns far exceed the average return rate of 21% from venture capital firms established in 2023, according to financial data provider PitchBook.

The success of this venture capital firm has also drawn the attention of House Democrats. In August of this year, Congressman Jamie Raskin wrote to the leadership of 1789, demanding to provide a list of the company's investments, communications with the government, and information about the decision to hire Little Trump.

While Little Trump and Malik acknowledge their connections with broader presidential donors, influential supporters, and senior officials, they do not believe that 1789's success derives from direct contact with the president and scoff at these accusations.

Malik (left) with Little Trump (right)

Little Trump argues that as an ordinary citizen, he is free to invest and has not done anything illegal. He states that he talks to his father every few weeks and never discusses business matters with him, nor does he hold any policy positions or roles in the government. Malik emphasizes his physical distance from political centers, claiming he has never stepped foot in the White House.

However, even maintaining distance from the president, for Little Trump, who is close to policymakers, blurring the lines between business and politics will also attract public criticism. In March of this year, Little Trump spoke at an event for the Republican State Attorneys General Association, advocating for federal-level regulation of prediction markets.

Whether states can restrict these platforms based on gambling laws has been the core controversy faced by the industry in the past year. Little Trump's advocacy for prediction markets is not an act of nobility but is entirely driven by interests.

Guests of Two Major Prediction Markets

In July 2024, during the Republican National Convention, at a rooftop bar in Milwaukee, Shane Copland, the founder of Polymarket, in a black T-shirt, was surrounded by well-dressed Republicans. Perhaps most impressively, he shared a table with Little Trump and Malik.

At that time, Little Trump expressed his recognition of Polymarket, believing that the election trend it displayed matched what he heard from voters. Not long after, 1789 made its first investment in Polymarket ahead of the 2024 election. After Trump won the presidential election and Little Trump joined 1789 as a partner, the company invested in Polymarket again.

Polymarket, which gained widespread attention during the American election, was still facing market access restrictions. As early as 2022, it had reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) over issues such as failing to register legally, paying a $1.4 million fine. For Polymarket, elections bring traffic and reputation, but converting these into a larger business still requires addressing regulatory issues.

On the other hand, Kalshi fought for space to conduct election contract trading through litigation in 2024. This CFTC-regulated platform also came into the Trump family's view. According to Little Trump's own account, on election night at Mar-a-Lago, he and family members used Kalshi to monitor election trends, realizing his father’s victory earlier than television media. This experience was later included in Kalshi's announcement of his hiring, serving as a personal endorsement from the president's son for the prediction market.

Two months later, on January 13, 2025, one week before Trump’s official inauguration, Kalshi announced that Little Trump would serve as a strategic advisor, hoping to leverage his business experience and influence to reach more partners and users, bringing prediction markets into the mainstream.

Joining as an advisor, Little Trump was granted shares in Kalshi valued at $300,000, at the time when Kalshi's valuation was less than $2 billion. As Kalshi continued to expand, by May 2026, the company’s valuation for a round of financing had reached $22 billion.

In the summer of 2025, Polymarket also saw a turning point. Following the conclusion of the criminal and civil investigations against the company, it subsequently established a compliance path to re-enter the U.S. market through a $112 million acquisition of QCEX, which holds CFTC-related licenses.

On August 26, Polymarket announced a strategic investment from 1789 and hired Little Trump to join its advisory board; in November 2025, Polymarket received a revised directive from the CFTC and began actively expanding into the U.S. market.

The two major prediction market giants have been fiercely competing for users and market share, yet surprisingly, both hired the president’s son in a unified manner. In February 2026, Kalshi founder Tarek Mansour commented on Little Trump in an interview with the Financial Times, stating, "He is very helpful."

Little Trump and 1789’s collaboration with prediction markets continues to deepen. At the end of June this year, Copland visited Malik’s home in the Hamptons to discuss how to improve Polymarket’s operations in preparation for a possible IPO.

At the end of August, The Wall Street Journal reported that 1789 is the lead investor in Polymarket’s $1 billion financing plan, expected to invest about $300 million. Furthermore, this plan would raise Polymarket’s valuation to $21 billion.

From a dining table during the campaign to advisory positions, equity, and continued investment, Little Trump has tightly linked his commercial interests with the prospects of the prediction market.

Returning to the ongoing $3 billion fundraising by 1789, investors need to judge not only the company’s products, orders, and valuations but also the extent to which this fund's proximity to the power center can provide a significant commercial advantage.

And for Little Trump, no matter how rich his resume and job description may be, it ultimately cannot outweigh the implicit "son of Trump" lineage behind it.