House Democrats are opening a new investigation into Donald Trump Jr. and the venture capital firm he joined shortly after his father returned to the White House.
In a letter obtained by MS NOW, Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, questions whether the lucrative bets made by 1789 Capital since January 2025 have been helped by access to the Trump administration.
1789 Capital, which was reportedly worth only a few million dollars when Trump Jr. joined, is now estimated at roughly $3 billion.
In the letter, Raskin points to a series of investments he says have been made with “almost clairvoyant accuracy.”
One investment drawing particular scrutiny is Vulcan Elements, a rare-earth magnet producer.
1789 Capital bought an undisclosed stake in 2025, about three months before the Pentagon announced a $620 million loan to the company.
Bloomberg valued the two-year-old startup at about $200 million around the time of the investment. Following news of the government deal, its estimated value soared to nearly $2 billion.
“This was an amazing turn of events when the Trump Administration decided to pump over half a billion dollars into an unproven start-up company,” Raskin writes.
Trump Jr. has denied having “inside information,” previously telling The New York Times that he and 1789 Capital president Omeed Malik simply made a “reasonable assumption” that Vulcan would succeed.
“It’s not like it takes a genius to figure this out,” Trump Jr. told The New York Times.
Raskin is also seeking information about the firm’s investments in Juul, Polymarket and defense contractor Anduril Industries.
Reuters reported that 1789 invested in e-cigarette company Juul in March 2025, before the FDA later reversed a ban on certain e-cigarette products.
Raskin argues the pattern warrants deeper scrutiny.
“With Don Jr.’s new leadership role, 1789 Capital has developed an uncanny ability to identify companies that are about to receive massive influxes of cash from the Trump Administration or to benefit from significant changes in federal policies and regulations,” he writes. “They say there is no such thing as a sure thing in investing, but this is about as close as you can get.”
He is requesting communications involving the firm and federal officials, elected representatives and other government figures, along with a complete list of its investments.
Raskin goes further, alleging it is “impossible to believe that your firm’s astonishing growth and success are due to anything other than insider political influence and thoroughgoing corruption.”
No evidence has been presented that 1789 Capital has violated the law.
AJ Merton, 1798’s counsel, dismissed the allegations as “unsubstantiated talking points.”
“Repackaging press clippings on congressional letterhead does not turn news headlines into evidence, and that practice is a hallmark of partisan stunts and politically motivated harassment, not oversight,” Merton told MS NOW.
The Daily Beast has contacted Trump Jr. for comment.
Republicans have so far resisted Democratic attempts to subpoena Trump Jr. over the firm’s investments.
But that resistance could become irrelevant if Democrats capture the House in November.
And polls show that is likely. An Emerson College poll currently gives Democrats an 8-point advantage on the generic congressional ballot, amid declining support for Trump and his historically unpopular war with Iran, which has also contributed to higher energy prices.
