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Venture capital used to pretend it was purely about spreadsheets, code, and network effects. You found a smart team, gave them cash, and hoped they scaled fast enough to yield a huge exit.
That old playbook is dead. The intersection of politics and private equity has never been more obvious, or more lucrative. Nothing proves this shift quite like 1789 Capital, the Palm Beach-based private equity firm where Donald Trump Jr. serves as a named partner.
If you think this is just another standard investment vehicle capitalising on a famous last name, you're missing the bigger picture. 1789 Capital represents a profound rewiring of how corporate funding, federal policy, and national security interests operate. The firm isn't just seeking financial returns; it's explicitly leaning into its political edge to dominate the market.
The Myth of Neutral Capital
For decades, Silicon Valley insisted that money was ideologically neutral. 1789 Capital explicitly rejects that premise. Founded by Omeed Malik, Chris Buskirk, and Rebekah Mercer, the firm chose its name to honour the year the U.S. Bill of Rights was adopted. They call their philosophy "patriotic capitalism."
Basically, they started with a mission to fund companies that align with an "America First" ethos. In the beginning, the media framed this as a simple anti-woke play, pointing to early investments like Tucker Carlson's media startup or the public listing of firearms retailer GrabAGun Digital Holdings.
Then things changed. The strategy quickly shifted from cultural grievances to hard-nosed industrial policy. The real money isn't in alternative social media apps; it's in defense technology, aerospace, energy, and critical supply chains.
The numbers tell the story of this rapid transformation. The 1789 Capital Growth Equity Fund began 2025 with a modest $200 million in assets. By December 31, 2025, that figure swelled to $2 billion, forcing the firm to close the fund to new investors. They've since spun up a real estate fund that pulled in another $1 billion to exploit migration trends toward low-tax states like Florida.
When Portfolio Companies Meet Pentagon Contracts
The true strength of 1789 Capital lies in how its investments align with federal priorities. Take a look at Vulcan Elements, a rare earth magnet startup.
In August 2025, 1789 Capital took an equity stake in Vulcan Elements as part of a $65 million funding round. Trump Jr. was open about his role, telling reporters he was highly active in deciding where to deploy the firm's resources. Only three months later, the federal government committed a staggering $620 million loan and a $50 million equity investment to that exact same company.
It was the single largest loan ever issued by the Pentagon's Office of Strategic Capital. House Democrats, led by Representative Maxine Dexter, tried to subpoena Trump Jr. to look into the deal, pointing out that an executive order had waived the usual independent technical reviews for mineral projects. Republicans blocked the subpoena.
Is it a conflict of interest? The firm's critics certainly think so. They argue it allows the president's inner circle to profit directly from administrative actions. A spokesman for 1789 Capital hit back, stating the fund maximizes transparency and compliance, noting that no one at the fund actually works in the government.
Whether you find that explanation convincing or not, the financial reality remains unchanged. At least four companies in 1789's portfolio received federal contracts or awards in 2025 alone, pulling in more than $735 million.
Tracking the Deals That Matter
The firm's betting slip goes far beyond rare earths. They've built an interconnected web of late-stage technology and industrial companies that are perfectly positioned for a protectionist economic era.
- Anduril Industries: The defense tech darling founded by Palmer Luckey is a core holding. Anduril is currently scaling up large-scale manufacturing for the YFQ-44, an autonomous fighter jet designed for the U.S. Air Force that acts as an unpiloted wingman for human pilots.
- SpaceX: 1789 holds a stake in Elon Musk's aerospace giant, which sits on the cusp of a potential $1 trillion valuation as public market rumors intensify.
- Groq: The fast-growing artificial intelligence chipmaker, which recently notched a partnership with Nvidia valued near $20 billion.
- Prediction Markets: Trump Jr. holds a personal stake in Polymarket and advises Kalshi. These platforms have seen trading volumes explode as users wager hundreds of millions on geopolitical tension and administration policies. Polymarket's valuation recently leaped to $9.6 billion.
The investment thesis isn't hidden. It's an aggressive bet on deglobalisation. The firm explicitly avoids investing in tech giants like OpenAI, which they view as unsupportive of the current political paradigm. Trump Jr. has openly stated he turns down massive deals if the underlying ethos doesn't align. They want founders who are entirely bought into the domestic industrial rebuild.
The Global Minerals Scramble
The ultimate validation of this state-aligned investment strategy is playing out right now in Central Asia. Look at the recent moves by Cove Kaz Capital, a mining group controlling 70% of major tungsten projects in Kazakhstan.
In April 2026, Cove Kaz agreed to merge with Skyline Builders, a Nasdaq-listed entity. Guess who invested heavily in Skyline Builders months prior? Donald Trump Jr. and Eric Trump, acting through an investment vehicle called American Ventures.
Tungsten is a vital component for armor-piercing ammunition, drilling tools, and missiles. China currently controls roughly 80% of the global supply and has heavily restricted exports. This makes the Kazakh mine the largest untapped tungsten source outside of Chinese control.
Now the pieces are moving. The U.S. Export-Import Bank and the Development Finance Corporation have already issued nonbinding letters of interest for up to $1.6 billion to back the project. Recently, Cove Kaz applied to the Pentagon's Office of Strategic Capital for an additional $400 million to fast-track production.
The Trump brothers maintain they are merely passive investors with no operational oversight. Cove's chief executive, Pini Althaus, was more direct, noting the company received direct assistance from top administration officials to secure the mine.
How to Play the New Era of Politicized Venture
If you are an investor or a founder, the ascent of 1789 Capital offers an essential lesson. The era of the purely neutral, software-only VC firm is fading. If you want to survive the next few years, you need to adapt to a world where geopolitics dictates capital flows.
First, stop looking exclusively at SaaS or consumer apps. The real alpha is migrating toward deep tech, hard infrastructure, and domestic manufacturing. Look for companies solving physical bottlenecks—semiconductors, critical mineral refining, defense tech, and domestic energy production. These sectors enjoy bipartisan interest, but they get an absolute rocket booster under an "America First" regulatory framework.
Second, understand the regulatory wind direction. Government agencies like the Office of Strategic Capital are becoming the new kingmakers of the startup world. A single federal loan can completely rewrite a startup's valuation overnight. When evaluating early or late-stage businesses, check how closely their success aligns with federal supply chain mandates. If a business helps decouple Western supply chains from foreign adversaries, it's a prime target for capital injection.
The line between Washington and Wall Street hasn't just blurred; it's been completely erased. 1789 Capital didn't create this environment, but they are playing it better than almost anyone else. Align your capital with national priorities, or get left behind.
