Novig, a peer-to-peer sports betting platform, has successfully raised $75 million in a Series B funding round, achieving a post-money valuation of $500 million. This significant investment comes as the company prepares to pivot towards becoming a prediction market platform, pending approval from the Commodity Futures Trading Commission (CFTC). The funding round was spearheaded by Pantera Capital, a California-based investment firm, and saw contributions from notable investors such as Multicoin Capital, Makers Fund, and Edge Equity, alongside existing backers like Forerunner, Perceptive Ventures, and NFX.
A Journey of Growth
Since its inception in 2021, Novig has accumulated over $105 million in funding, including an earlier $18 million Series A in August. Co-founder and CEO Jacob Fortinsky articulated the company’s current model, which operates as a “peer-to-peer exchange built under the sweepstakes framework.” However, the strategic vision is clear: Novig aims to eliminate its sweepstakes offering and transition to a fully CFTC-regulated prediction market within the next six months, contingent upon receiving the necessary licensing to operate as a Designated Contract Market.
Transitioning from Sports Betting to Prediction Markets
Originally launched as an online sports betting operator, Novig made a notable shift to the sweepstakes model in late 2024, resulting in a tenfold increase in trading volume, surpassing four billion in 2025. Fortinsky expressed confidence in the company’s trajectory, stating that the potential in the prediction market category is immense. He believes Novig possesses the most advanced product and competent team in the industry, positioning it to compete effectively with rivals who have also attracted substantial investments.
Competitive Landscape
While Fortinsky refrained from naming specific competitors, the landscape includes CFTC-regulated platforms such as Polymarket and Kalshi, both of which have recently secured funding at valuations in the billions. These competitors, alongside established sportsbook giants like DraftKings, Fanatics, and FanDuel, are actively exploring the prediction market sector, which adds to the competitive pressure.
Unique Value Proposition
What sets Novig apart in the crowded prediction market arena, according to Fortinsky, is its focus on sports and the absence of commission fees for individual bettors. This unique approach positions Novig to attract a broad base of users who may be deterred by traditional betting fees. The newly acquired capital will be allocated towards marketing initiatives and expanding the team, with plans to increase the workforce from approximately 50 to 65 employees in the near future.
Strategic Investments and Expansion Plans
As Novig gears up for this transition, the company is actively seeking to fill various roles in engineering, marketing, customer experience, and legal departments. With the infusion of fresh capital, Novig is poised to enhance its market presence, refine its offerings, and better serve its growing user base.
Looking Ahead
The future of Novig appears promising as it embarks on this strategic evolution. The company’s commitment to becoming a key player in the prediction market space signals a significant shift in its operations, potentially redefining the landscape of sports betting and prediction markets.
In conclusion, Novig’s ambitious pivot, backed by substantial funding, positions it as a formidable contender in the evolving world of prediction markets. As it prepares for regulatory approval and workforce expansion, the company is set to unlock new opportunities that could reshape the betting industry. The coming months will be crucial in determining whether Novig can realize its vision and emerge as a leader in this dynamic marketplace.
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