ProphetX has successfully raised $35 million as it aims to broaden its business-to-business (B2B) operations, enhance market liquidity, and expedite product development within the federally regulated sports-focused prediction market.
The company has set an ambitious goal to triple its trading volume by 2026 through strategic B2B partnerships, comprehensive institutional market coverage, and its unique Request for Quote (RFQ) Parlay Mechanism.
This fundraising initiative comes on the heels of ProphetX’s shift from a sweepstakes platform to a federally regulated prediction market. Following its operation during the FIFA World Cup under the new regulatory framework, the company reported a remarkable 50% growth in key performance metrics, including active users and assets on its platform, within the first month.
Operating as a peer-to-peer exchange, ProphetX allows users to set their own prices and trade directly with one another while incurring a commission. This model stands in contrast to traditional single-dealer sportsbooks, which the company argues are structured to profit from customer losses.
The regulated market framework incorporates an RFQ Parlay Mechanism, enabling users to create and price combinations of multiple events directly with their trading partners. This system adheres to institutional trading protocols found in conventional financial markets, aiming to provide flexibility, transparent pricing, and competitive options in event-based contracts.
The funding round was led by Parlay Capital and Data Point Capital, with participation from FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group, and Sharp Alpha Advisors. Additional investments came from Chicago Trading Company Ventures, Belvedere Trading, Ematiq, and key players from White Swan Data and Consolidated Trading.
The involvement of various venture, sports, and proprietary trading firms underscores the institutional confidence in ProphetX’s business model, while the interest from trading companies highlights the professional trading community's engagement in the regulated prediction market space.
“Following ProphetX's recent nationwide launch and the CFTC’s approval to operate as America’s first federally regulated sports-native prediction market, this funding will empower us to meet the rising demand from both consumers and institutions eager to engage in this emerging asset class,” stated Dean Sisun, CEO and Co-Founder of ProphetX.
“Prediction markets have become a permanent part of the American financial landscape, and ProphetX aims to be at the forefront of this evolution.”
The newly acquired capital will facilitate ProphetX's efforts to capture a larger portion of the expanding B2B event contracts market.
“We are excited to back Dean and the ProphetX team with additional capital to accelerate their growth as America’s first federally regulated, sports-native prediction market,” commented Greg Buonocore, CEO and Managing Partner at Parlay Capital Holdings.
“ProphetX is establishing the leading infrastructure that will shape how both everyday Americans and institutional investors engage in sports prediction markets.”
“ProphetX has positioned itself as a trailblazer in the prediction markets ecosystem, and we are delighted to be part of this funding round,” added Scott Savitz, Founder and Managing Partner of Data Point Capital.
“The company's innovative strategy, coupled with its recent CFTC approval and growing interest in event-based markets, sets it up for sustained growth. We look forward to supporting the team as they pursue their vision.”