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ProphetX has raised $35 million to add liquidity, develop new products, and grow its sports prediction market technology through outside partners. The financing follows federal approval and a nationwide platform launch in June. Good to Know Parlay Capital and Data Point Capital led the $35 million ProphetX funding round. ProphetX received CFTC approval as a Designated Contract Market and Derivatives Clearing Organization. Users trade sports event contracts directly with other users rather than against ProphetX. ProphetX Targets Liquidity and B2B Growth ProphetX plans to use its new capital across two connected parts of the business. More liquidity can support tighter pricing and greater trading capacity on the consumer exchange. Meanwhile, its B2B platform lets other companies add federally regulated sports prediction markets without building their own exchange infrastructure. The company already put that model into use through Players Lounge. The partnership allows users on the competitive gaming platform to trade NFL, NBA, and international soccer contracts through ProphetX infrastructure. “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,” ProphetX CEO and cofounder Dean Sisun said. “Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them.” Parlay Capital and Data Point Capital led the round. FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, The Operating Group, and Sharp Alpha Advisors also took part. Trading businesses also joined the investor group. Participants included Chicago Trading Company Ventures, Belvedere Trading, Ematiq, and principals from White Swan Data and Consolidated Trading. ProphetX received federal Designated Contract Market approval on June 11. The platform then launched nationwide on June 18 with both exchange and clearing functions under CFTC oversight. “ProphetX has established itself as a pioneer in the prediction markets ecosystem, and we are thrilled to participate in this funding round,” Data Point Capital Founder and Managing Partner Scott Savitz said. “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.” ProphetX Returns to Its Exchange Roots The latest model brings ProphetX back to the peer-to-peer structure that shaped its original business. The company first operated as Prophet Exchange, a regulated sports betting exchange in New Jersey. It left that market in 2024 and later offered free-to-play sweepstakes sports products under the ProphetX name. Federal prediction market regulation gave the company another route. ProphetX applied for CFTC approval in November before receiving its exchange designation in June. Unlike platforms that cover politics, economics, entertainment, and sports, ProphetX concentrates on sports event contracts. Prices come from orders submitted by users, while customers can take either side of a contract and trade out before settlement when buyers or sellers remain available. That structure removes a traditional sportsbook from the other side of each transaction. However, enough active orders remain essential. The $35 million financing therefore gives ProphetX capital to support liquidity while it adds customers and distribution partners.

ProphetX

ProphetX Raises $35 Million

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