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ProphetX has raised $35 million as the federally regulated sports-focused prediction market seeks to expand its business-to-business operations, increase market liquidity and accelerate product development.
The company is targeting a tripling of trading volume in 2026 through B2B partnerships, institutional market coverage and its proprietary Request for Quote Parlay Mechanism.
The fundraising follows ProphetX’s transition from a sweepstakes platform to a federally regulated prediction market. After operating during the FIFA World Cup under the regulated model, the company recorded a 50% increase in core performance indicators, including active users and assets on the platform, during its first 30 days of operations.
ProphetX operates as a peer-to-peer exchange in which users set prices and trade directly with other participants while paying a commission. The company contrasts that structure with the single-dealer sportsbook model, which it says is designed to generate profits when customers lose.
Its regulated market structure includes an RFQ Parlay Mechanism that allows users to create and price combinations involving multiple events directly with counterparties. The system follows institutional trading protocols used in traditional financial markets and is intended to provide flexibility, transparent pricing and competition in event-based contracts.
Parlay Capital and Data Point Capital led the fundraising round. Other participants included FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group and Sharp Alpha Advisors. Chicago Trading Company Ventures, Belvedere Trading, Ematiq, principals at White Swan Data and principals at Consolidated Trading also invested directly.
The company said the participation of venture, sports and proprietary trading firms reflected institutional confidence in its business model, while the investments from trading companies and industry principals indicated professional trading interest in the regulated prediction market sector.
“On the heels of ProphetX’s recent nationwide launch and CFTC approval to operate as America’s first federally regulated sports-native prediction market, this raise gives us the fuel to meet the surging demand from both consumers and institutions to participate in this new asset class,” said ProphetX CEO and Co-Founder Dean Sisun.
“Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them.”
ProphetX said the new capital would support its effort to secure a larger share of what it described as the expanding B2B event contracts market.
“We are excited to support Dean and the ProphetX team with additional capital to accelerate their next phase of growth as America’s first federally regulated, sports-native prediction market,” said Greg Buonocore, CEO and Managing Partner at Parlay Capital Holdings.
“ProphetX is building the industry-leading infrastructure that will define how everyday Americans and institutional investors alike participate in sports prediction markets.”
“ProphetX has established itself as a pioneer in the prediction markets ecosystem, and we are thrilled to participate in this funding round,” said Scott Savitz, Founder and Managing Partner of Data Point Capital.
“The company’s innovative approach, combined with its recent CFTC approval and increasing interest in event-based markets, positions it well for long-term growth. We look forward to supporting the team as they continue to execute on their vision.”