ProphetX is making strides into B2B prediction markets after securing $35 million in funding. The sports-centric exchange is focused on offering the essential infrastructure for other businesses to launch federally regulated event contracts.
The fundraising initiative was spearheaded by Parlay Capital and Data Point Capital, with contributions from FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group, Sharp Alpha Advisors, and multiple proprietary trading firms.
ProphetX has indicated that the raised funds will be allocated towards enhancing product development, boosting market liquidity, and expanding its B2B platform and collaborative efforts. Earlier this year, the company had concluded a $10 million Series A funding round.
This funding news follows closely after ProphetX’s launch as a Commodity Futures Trading Commission (CFTC)-regulated prediction market, moving on from its previous role as a sweepstakes platform.
Dean Sisun, CEO and co-founder, mentioned that the company aims to triple its trading volume by 2026, largely relying on B2B partnerships and an expanded institutional market presence.
“Prediction markets are now an integral part of the American financial landscape, and ProphetX aspires to take the lead,” Sisun stated in an official comment.
Greg Buonocore, CEO and managing partner at Parlay Capital Holdings, added that this additional funding will fast-track the company’s growth phase.
“ProphetX is developing the industry-leading infrastructure that will reshape how both average Americans and institutional investors engage with sports prediction markets,” he noted.
ProphetX Expands Beyond Retail Competition
While ProphetX will maintain its consumer-focused exchange, Sisun identifies a more substantial opportunity in being the backbone that powers prediction markets for other enterprises.
In a Substack post following the funding, Sisun pointed out that current leaders like Kalshi and Polymarket began as general-purpose prediction markets but recognized sports as a lucrative source of trading volume.
ProphetX’s strategy is to position itself explicitly as the premiere sports-focused exchange and the clearing infrastructure for third-party offerings.
Sisun emphasized that ProphetX aims to build infrastructure for other businesses rather than solely competing against existing prediction markets for retail customers.
He highlighted approximately 3,000 US brokerages managing around $100 trillion in assets, alongside thousands of consumer applications drawing audiences interested in both sports and trading.
Our goal is to become the premier exchange serving these clients, and this funding will help us realize that vision.
Dean Sisun, CEO and Co-Founder of ProphetX
The company has already begun implementing this model, with Players’ Lounge becoming its first announced B2B partner this month by integrating ProphetX markets within its gaming platform.
Sisun noted that ProphetX has entered into “several” other agreements that will be disclosed in the upcoming months.
According to ProphetX, both active users and assets held on its platform have surged by 50% within the first 30 days of operating under the federal regulatory structure.
Sisun Advocates for Federal Prediction Market Regulation
This expansion comes at a time when prediction market operators are in a dispute with state gambling regulators over whether sports event contracts should be governed federally or at the state level.
Sisun leveraged his Substack post to argue that a federal framework could provide enhanced consumer value compared to traditional state-regulated sports betting.
He specifically critiqued New York’s online sportsbooks, which face a 51% tax on gross gaming revenue, asserting that steep taxes and promotional expenses ultimately lead operators to increase the margins charged to bettors.
In contrast, ProphetX employs a peer-to-peer model where users trade amongst themselves, and the platform collects a commission.
“Sports have always warranted a legitimate exchange,” he stated. “And now, it finally has one.”