ProphetX raises $35m to scale sports prediction market platform
ProphetX launched a peer-to-peer exchange for sports event contracts last month.
US.- ProphetX has closed a $35m funding round intended to accelerate product development, boost market liquidity and scale its prediction market platform. The round was led by Parlay Capital and Data Point Capital. Participants included 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 invested.
Dean Sisun, CEO and co-founder of ProphetX, said: “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.”
Greg Buonocore, CEO and managing partner at Parlay Capital Holdings, said: “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.”
Scott Savitz, founder and managing partner of Data Point Capital, said: “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.”
Last month, ProphetX launched a peer-to-peer exchange for sports event contracts under dual registration as a contract market and derivatives clearing organisation with the US Commodity Futures Trading Commission. It focuses exclusively on sports markets and uses a proprietary request-for-quote parlay mechanism that allows users to price multi-event combinations directly with counterparties.
The company previously operated a sweepstakes model. It reported that active users and assets on the platform rose 50 per cent in the first 30 days of regulated operations.
