ProphetX Eyes B2B Prediction Market Growth After $35m Raise

ProphetX is targeting a push into B2B prediction markets after raising $35 million, with the sports-focused exchange aiming to provide the infrastructure for other companies to launch federally regulated event contracts.

The funding 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 and a number of proprietary trading firms.

ProphetX said the capital will be used to accelerate product development, increase market liquidity and expand its B2B platform and partnerships. The company had previously completed a $10m Series A fundraising round in 2023.

The raise comes shortly after ProphetX launched as a Commodity Futures Trading Commission (CFTC)-regulated prediction market following its previous incarnation as a sweepstakes platform.

CEO and co-founder Dean Sisun said the company is now targeting a tripling of trading volume during 2026, driven partly by B2B partnerships and greater institutional market coverage.

“Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them,” Sisun said in a statement.

Greg Buonocore, CEO and managing partner at Parlay Capital Holdings, added that the additional capital will accelerate the company’s next phase of growth.

“ProphetX is building the industry-leading infrastructure that will define how everyday Americans and institutional investors alike participate in sports prediction markets,” he said.

ProphetX looks beyond retail battle

While ProphetX will continue operating its consumer-facing exchange, Sisun sees the bigger opportunity in becoming the infrastructure powering prediction markets offered by other businesses.

Writing on Substack following the raise, Sisun argued that current market leaders Kalshi and Polymarket were general-purpose prediction markets which moved into sports after recognizing its potential for generating trading volume.

ProphetX is attempting to position itself specifically as the sports-focused exchange and clearing infrastructure behind third-party products.

Sisun said ProphetX ultimately wants to provide that infrastructure to other companies rather than simply fight established prediction markets for the same pool of retail customers.

He pointed to roughly 3,000 US brokerages holding around $100 trillion in assets, alongside thousands of consumer apps with audiences interested in sports and trading.

We want to be the go-to exchange to service these clients, and this raise will go towards building out that vision.

ProphetX CEO and Co-Founder Dean Sisun

The company has already begun testing that model. Players’ Lounge became its first announced B2B partner earlier this month, integrating ProphetX markets into its gaming platform.

Sisun said ProphetX has signed a “handful” of other agreements which will be revealed over the coming months.

ProphetX said active users and assets held on its platform have each increased by 50% during its first 30 days operating under the federal regulatory framework.

Sisun backs federal prediction market model

The expansion comes as prediction market operators remain locked in a battle with state gambling regulators over whether sports event contracts should fall under federal or state jurisdiction.

Sisun used his Substack post to argue that the federal model can deliver greater consumer value than traditional state-regulated sports betting.

He pointed specifically to New York, where online sportsbooks pay a 51% tax on gross gaming revenue, arguing that high taxes and promotional costs ultimately encourage operators to increase margins charged to bettors.

ProphetX instead operates a peer-to-peer model where users trade against each other and the platform collects a commission.

“Sports have always deserved a real exchange,” he wrote. “Now it has one.”