ProphetX has raised $35 million to expand its federally regulated sports-focused prediction market, increase market liquidity and grow its business-to-business technology and partnership operations. The round was led by Parlay Capital and Data Point Capital. Other participants included FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group and Sharp Alpha Advisors.
Chicago Trading Company Ventures, Belvedere Trading, principals from White Swan Data and Consolidated Trading, and Ematiq also invested. The participation of proprietary trading firms could provide ProphetX with relationships and expertise relevant to market making, pricing and liquidity.
ProphetX recently completed a nationwide launch after receiving approval from the Commodity Futures Trading Commission to operate as a federally regulated, sports-native prediction market. The company previously operated through a sweepstakes structure.
Prediction markets allow participants to buy and sell contracts whose value depends on the outcome of an event. ProphetX operates as a peer-to-peer exchange, meaning users trade against one another rather than directly against the platform through a conventional sportsbook model.
Participants set prices and pay a stated commission to the exchange. Market pricing is determined through bids and offers from users and liquidity providers, although participants remain exposed to the risk of financial loss.
ProphetX also offers a Request for Quote Parlay Mechanism. The system allows users to request pricing for combinations of several events, with counterparties responding to the requested contract. The structure is based on request-for-quote processes used in institutional financial markets.
The company reported that active users and assets held on its platform increased by approximately 50% during its first 30 days as a federally regulated market. ProphetX is targeting a tripling of trading volume during 2026 through business partnerships, broader institutional coverage and the RFQ product. These are company projections and are not guaranteed.
KEY QUOTES:
“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.”
“Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them.”
Dean Sisun, Co-Founder and CEO of ProphetX
“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.”
“ProphetX is building the industry-leading infrastructure that will define how everyday Americans and institutional investors alike participate in sports prediction markets.”
Greg Buonocore, CEO and Managing Partner at Parlay Capital Holdings
“ProphetX has established itself as a pioneer in the prediction markets ecosystem, and we are thrilled to participate in this funding round.”
“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.”
Scott Savitz, Founder and Managing Partner of Data Point Capital
