ProphetX Raises $35M to Scale Federally Regulated Sports Prediction Market
ProphetX, the first federally regulated sports-native prediction market in America, has raised $35 million in funding led by Parlay Capital and Data Point Capital. The capital will be used for product development, liquidity expansion, and scaling its B2B platform. Institutional investors from venture, sports, and trading sectors participated, reflecting strong confidence in the company's model. Following recent CFTC approval and a successful FIFA World Cup launch as a regulated prediction market, ProphetX has seen significant growth in active users and assets on-platform—up 50% within its first month. The firm aims to triple trading volume this year through B2B partnerships and expanded institutional coverage. Unlike traditional sportsbooks, ProphetX operates as a peer-to-peer exchange with transparent pricing. The company's RFQ Parlay Mechanism allows users to create multi-event contracts directly with counterparties using protocols similar to those in financial markets. This innovation is expected to drive adoption among both retail consumers and professional traders.
