FDJ Ventures among new investors in prediction markets start-up, which previously operated as a sweepstakes platform in the United States
New York-headquartered ProphetX has raised $35 million as it looks to scale its sports-native prediction market and B2B platform.
The funding will be used to accelerate product development, boost liquidity across markets, and scale the company’s B2B platform and partnerships.
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, and Sharp Alpha Advisors.
“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.”
ProphetX previously operated as a sweepstakes platform and entered the prediction market space in June after securing Commodity Futures Trading Commission (CFTC) approval as a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO).
“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,” said Greg Buonocore, CEO and managing partner at Parlay Capital Holdings. “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, commented: “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. We look forward to supporting the team as they continue to execute on their vision.”
Last week, ProphetX signed its first B2B deal with Players’ Lounge, a skill-based gaming platform where gamers compete for real-money on games such as Madden NFL, NBA2K, Call of Duty and Fortnite.
Players’ Lounge is backed by investors including Drake, Take-Two Interactive CEO Strauss Zelnick, Comcast Ventures, and Samsung Next, and claims to have processed over $250 million in skill-based gaming wagers since its launch in 2016.