ProphetX Raises $35 Million to Expand Regulated Sports Prediction Market Platform

ProphetX Secures $35 Million in Funding

New York City-based ProphetX has closed a $35 million funding round to accelerate the growth of its regulated sports prediction market and B2B platform.

The round was led by Parlay Capital and Data Point Capital, with participation from FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, The Operating Group, Sharp Alpha Advisors, Chicago Trading Company Ventures, Belvedere Trading, principals at White Swan Data, principals at Consolidated Trading, and Ematiq.

Founded in 2018, ProphetX operates a federally regulated, sports-native prediction market where users trade event-based contracts through a peer-to-peer exchange.

Building a Regulated Prediction Market

ProphetX enables users to set their own prices, trade directly with one another, and pay a transparent commission on transactions.

Its platform includes a proprietary Request for Quote (RFQ) Parlay Mechanism, allowing users to construct and price multi-event combinations directly with counterparties.

According to the company, the mechanism mirrors institutional trading protocols used in traditional financial markets, providing greater flexibility, transparency, and competitive pricing for event-based contracts.

Scaling Product Development and Market Liquidity

The newly raised capital will be used to accelerate product development, increase liquidity across ProphetX's markets, and expand its B2B platform and strategic partnerships.

The company is targeting a threefold increase in trading volume during 2026, driven by new B2B partnerships, broader institutional market coverage, and continued adoption of its RFQ Parlay Mechanism.