Nigerian co-founded prediction market and sports betting platform Novig has raised $75 million in fresh capital to scale its peer-to-peer sports prediction exchange across the United States.
This is according to a statement from the company announcing the funding round led by Pantera Capital.
The raise values the sports trading startup at $500 million and comes as demand grows for alternative sports wagering models following regulatory shifts in the U.S.
What they said
The company, co-founded by Kelechi Ukah and Jacob Fortinsky, latest raise values Novig at $500 million and strengthening its position in the fast-growing prediction markets space.
- Chief Executive Officer Jacob Fortinsky said the company is focused on closing the brand recognition gap with larger rivals.
- “The biggest gap between our competitors and us is brand recognition,” Fortinsky said. “We’re in some sense playing from behind, but I think we have a higher slope than our competitors, so we’re eager to keep up the momentum.”
- He added that while Novig does not charge a traditional bookmaker commission or “vig,” it plans to generate revenue by charging institutional traders and liquidity providers. However, monetization will not be a priority until the platform reaches $1 billion in monthly trading volume. It currently processes around $300 million monthly.
The funding comes months after Novig closed an $18 million Series A round at a $90 million valuation, bringing total capital raised to $108 million to date
More details
The fresh capital will be used to increase marketing spend, expand the company’s team, and roll out a loyalty program in the coming months. Novig has grown its workforce from 14 employees to 50 over the past year as trading activity increased.
- Fortinsky said the company remains optimistic that federal approval could come within months, enabling a nationwide launch.
- Novig has applied to the Commodity Futures Trading Commission to become a designated contract market. Approval would allow it to operate legally across all 50 U.S. states under federal oversight.
- The company currently operates under a sweepstakes model in multiple states, allowing users to place wagers using virtual currency that can be redeemed for prizes. It previously secured a state license in Colorado in 2023 but withdrew in 2024 after encountering regulatory challenges, opting instead to pivot toward a prediction market structure.
What you should know
Founded in 2021 while the co-founders were still students at Harvard, Novig was built around the idea of eliminating the “vig,” the commission traditionally taken by bookmakers on every bet.
- The company launched in 42 states in September 2024 under its sweepstakes and prediction market model.
- The broader prediction market sector has seen explosive growth in the past year. Kalshi and Polymarket were recently valued at $11 billion and $9 billion, respectively, while traditional sportsbook giants are increasingly introducing similar prediction-style products to stay competitive.
- With a new valuation of $500 million and federal approval pending, Novig is positioning itself as a challenger brand seeking to disrupt both traditional sportsbooks and emerging prediction market operators.
