PredictionStrike, a sports trading platform, has secured $10 million in a Series A funding round led by Bullpen Capital, a venture capital firm known for its early-stage investments in FanDuel.
Other participants in the funding round include MaC Venture Capital, Correlation Ventures, Elevate Capital, Gaingels, HighSage Ventures, and Sixty8 Capital.
About PredictionStrike
PredictionStrike, which had a post-money valuation of $32 million after the round, uses an algorithm to determine share prices based on how players perform in sports games and user demand.
Unlike traditional stock exchanges, PredictionStrike allows users to trade virtual shares in NFL, NBA, MLB players, and UFC fighters.
The platform has experienced significant growth, processing $60 million in transactions and attracting over 175,000 users, up from $15 million in transactions and 100,000 users just a year ago. The funds will be used to further develop the platform and expand its user base.
PredictionStrike operates as a “fantasy derivative platform” and a “game of skill,” which gives it a different regulatory status compared to sportsbooks. While available in about 40 states, some states have imposed regulatory scrutiny on similar platforms, requiring them to apply for licenses.
PredictionStrike primarily generates revenue through a 2.5% fee charged on each transaction conducted on its platform. Additionally, the company offers a subscription service where users can pay for lower transaction fees and access various perks.
In the future, PredictionStrike plans to leverage the data it collects on trends in athletes’ popularity and trading patterns for potential monetization opportunities, such as selling this data to interested parties. This data could be valuable for market analysis and insights into sports trading behavior.
