ProphetX Raises $35 Million as It Targets Threefold Increase in 2026 Trading Volume

ProphetX has raised $35 million as the federally regulated sports prediction market looks to expand its business-to-business operations, deepen market liquidity and speed up product development. The company is targeting a threefold increase in trading volume for 2026, leaning on new B2B partnerships, institutional market coverage and its proprietary Request for Quote Parlay Mechanism to get there.

The raise arrives just weeks after ProphetX completed its shift from a sweepstakes-style platform to a fully regulated exchange overseen by the Commodity Futures Trading Commission. The company says that after operating under the regulated model during the FIFA World Cup, it saw a 50% jump in core performance metrics — including active users and assets on the platform — in its first 30 days running the new structure.

How the exchange model works

ProphetX operates as a peer-to-peer exchange rather than a traditional sportsbook. Users set their own prices and trade directly against one another, paying a commission rather than betting against the house. The company has repeatedly drawn a contrast with the single-dealer sportsbook model, arguing that structure is built to profit when customers lose, whereas an exchange lets the market — not the operator — determine pricing.

Central to that pitch is ProphetX’s RFQ Parlay Mechanism, which lets users build and price multi-event combinations directly with counterparties. The system borrows from institutional trading protocols used in traditional financial markets, aiming to bring more flexibility and transparent, competitive pricing to event-based contracts — the kind of structure that has become increasingly relevant as prediction markets edge closer to mainstream sports betting.

Who backed the round

Parlay Capital and Data Point Capital led the funding round, with additional participation from FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group and Sharp Alpha Advisors. Chicago Trading Company Ventures, Belvedere Trading, Ematiq, and principals at White Swan Data and Consolidated Trading also invested directly.

ProphetX said the mix of venture, sports and proprietary trading firms in the round reflects institutional confidence in its business model, while direct investment from trading firms and industry principals signals professional trading interest in the still-young regulated prediction market sector — a space that already includes rivals like Kalshi and Polymarket, along with entrants from established sports betting brands.

“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 co-founder Dean Sisun. “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 the firm was backing ProphetX’s push to build “industry-leading infrastructure” for how everyday Americans and institutions participate in sports prediction markets. Data Point Capital founder and managing partner Scott Savitz called ProphetX “a pioneer in the prediction markets ecosystem,” pointing to its CFTC approval and rising interest in event-based markets as reasons for long-term growth.

What comes next

ProphetX said the new capital will help it chase a larger share of the expanding B2B event contracts market, building on momentum from its nationwide launch and dual registration as a Designated Contract Market and Derivatives Clearing Organization. As more bettors weigh prediction markets against traditional sportsbooks, the ability to raise fresh capital and scale trading volume will be a key signal of whether exchanges like ProphetX can carve out a lasting share of the broader sports wagering market in the years ahead.