ProphetX closed on a $35-million funding round, boosting the “sports-native” prediction market platform’s ability to provide added liquidity, fund development, and forge new partnerships
Key Takeaways
- ProphetX raised $35 million after receiving federal approval.
- The company became a CFTC-regulated prediction market operator last month.
- The funding will support liquidity, development, and partnerships.
ProphetX announced it raised $35 million to scale its unique “sports-native” prediction markets platform. The company reported that the funding round attracted a broad range of institutional investors, including venture, sports, and proprietary trading firms.
"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 cofounder Dean Sisun. "Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them."
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. Chicago Trading Company Ventures, Belvedere Trading, principals at White Swan Data, principals at Consolidated Trading, and Ematiq also made direct investments.
Enjoying Covers content? Add us as a preferred source on your Google account"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."
From exchange to sweepstakes to prediction markets
ProphetX started its journey as a regulated peer-to-peer sports betting exchange under the Prophet Exchange brand name. While peer-to-peer sports betting exchanges are popular in other parts of the world, exchanges are rare in the United States. After gaining regulatory approval in New Jersey, Prophet Exchange was unable to find traction in other state-regulated markets. In 2024, Prophet Exchange withdrew from New Jersey and relaunched as ProphetX, a free-to-play sports betting sweepstakes site. It wasn’t long before states started to take issue with the sweepstakes model. ProphetX, however, was able to pivot, once again.
While a peer-to-peer sports betting exchange didn’t quite fit with states’ regulatory infrastructure, it did lend itself to the federally regulated prediction markets model. ProphetX’s transformative journey has been heavily covered in the prediction market news cycle.
ProphetX filed an application with the Commodity Futures Trading Commission (CFTC) in November, seeking to gain regulatory approval to become a designated contract market (DCM) and derivatives clearing organization. (DCO). Last month, the CFTC granted the appropriate federal licenses for ProphetX to operate as both a DCM and DCO. On June 18, ProphetX launched its sports-native, peer-to-peer, predictions market platform. Additionally, it recently teamed up with Players’ Lounge, enabling their users to trade contracts on the NFL, NBA, and international soccer.
Unlike other prediction market operators, ProphetX focuses exclusively on sports event contracts. It also operates solely as a peer-to-peer exchange, meaning customers trade only against one another rather than company-backed market makers.
