TLDR
- Novig raised $75M in a Series B round led by Pantera Capital, valuing it at $500M
- The platform operates commission-free, peer-to-peer sports trading with $4B+ annualized volume
- Novig has applied to the CFTC to become a licensed Designated Contract Market, legal in all 50 states
- About 23% of Novig users are profitable, versus roughly 2% on traditional sportsbooks
- Rivals Kalshi and Polymarket are valued at $11B and $9B respectively; DraftKings and FanDuel stocks have fallen 50%+ in six months
Sports prediction market Novig has closed a $75 million Series B funding round, bringing its total raised to over $105 million and valuing the company at $500 million.
The round was led by blockchain venture firm Pantera Capital. Other investors include Multicoin Capital, Makers Fund, Edge Equity, Forerunner, Perceptive Ventures, and NFX.
Novig was founded in 2021 by Jacob Fortinsky and Kelechi Ukah, who met playing poker at Harvard. Fortinsky was frustrated that winning sports bettors were routinely banned by traditional sportsbooks, similar to how casinos treat card counters.
The company runs a peer-to-peer order-book exchange where bettors trade against each other, not against the house. It does not charge retail users any commissions, taking fees only from institutional traders instead.
Novig reported a tenfold increase in trading volume in 2025. Its annualized trading volume now exceeds $4 billion, with current monthly volume around $300 million.
The platform currently operates under a sweepstakes model in 42 states, allowing users to bet with virtual currencies. It launched this model in September 2024 after pulling out of Colorado, where it had struggled with state regulators.
Applying for Federal Approval
Novig has submitted an application to the Commodity Futures Trading Commission to become a licensed Designated Contract Market. That status would allow it to operate legally across all 50 U.S. states under federal oversight.
Kalshi received the same designation in 2020 and is now valued at $11 billion. Polymarket is valued at $9 billion. Both raised three separate funding rounds in 2025.
Fortinsky says he expects federal approval within the next few months. Until Novig hits $1 billion in monthly trading volume, monetization is not the top priority.
About 23% of Novig users are profitable, compared to roughly 2% on traditional sportsbooks, according to Pantera Capital managing partner Paul Veradittakit.
Competition With Traditional Sportsbooks
DraftKings and FanDuel parent Flutter Entertainment have both seen their stock prices fall more than 50% in the last six months. Both have launched their own prediction market features in the past two months.
DraftKings CEO Jason Robins called predictions “the most exciting new growth opportunity” since the 2018 Supreme Court ruling that opened sports betting to all states. That is a shift from just three months earlier, when he said prediction markets were “structurally limited.”
Novig’s total funding includes early backing from Y Combinator and former NFL quarterback Joe Montana, who joined the 2023 seed round.
The company has grown from 14 to 50 employees in the past year. It plans to use the new capital for marketing, product development, and a loyalty program rolling out in the coming months.
