Sports Prediction App Novig Secures $18M For Major Expansion

A fast-growing sports prediction market company is poised to make huge technology and item advances following a significant financial investment.


- Sweepstakes sports forecast platform got $18 million in funding.
- Novig strategies to utilize the cash to update present products, add more, and increase payment platforms.
- The app's users play standard sportsbook markets versus each other, not your house.


Novig, a sweepstakes app that released in September 2024, announced on Monday that endeavor capital firm Forerunner led an $18 million Series A funding round. Y Combinator, NFX, Perceptive Ventures, and Gaingels likewise purchased the prediction market platform that offers commission-free, peer-to-peer sports trading.


"The assistance from a few of the world's leading tech financiers, who believe in our mission to equalize sports wagering for great, is a powerful recommendation - not just of what we've developed, but of the future we're developing," Novig CEO and co-founder Jacob Fortinsky stated. "This funding will permit us to scale our objective throughout more sports, more formats, and eventually, to more users."


With the new financing, Novig prepares to expand into new sports markets and enhance its existing ones, while establishing brand-new features like leaderboards, group contests, and head-to-head trading. Novig stated it wants to add debit and credit card payments to the app, launch a full web platform, and grow its engineering and product groups with the increase of cash.


Attractive growth


Novig's growth is among the primary destinations for investors. The company has achieved a 50x increase in regular monthly trading volume since last fall and has actually exceeded 2 billion annualized volume in Novig Cash.
The prediction market business stated that more than 90% of its trades are peer-to-peer, which it says helps consumer retention.


"Novig sits at the center of several essential secular trends in gaming and entertainment, particularly that consumers significantly are spending their time, energy, and attention with financial items," Fawzi Itani, Principal at Forerunner, stated. "The Novig team brings the most sophisticated and nuanced point of view to sports prediction markets. They not just deeply comprehend their target customer, however are developing a system that is more fair, community-oriented, rewarding, and well, fun."


Peer-to-peer markets


Novig's platform, like numerous sweepstakes gaming operators, uses users at sign-up. Customers can likewise purchase Novig Cash, which can be redeemed for cash and prizes.


The sports forecast app, founded by Fortinsky and Kelechi Ukah, runs in 41 U.S. states and uses many traditional-sportsbook markets on MLB, NFL, WNBA, tennis, PGA Tour, UFC, and more. Users can bet the odds noted or set their own, all while betting each other, not your home.


"What we're developing isn't just sports forecasts - it's a real peer-to-peer market," Fortinsky said. "We think users deserve a system that rewards ability, shows true supply and demand, and provides every fan a reasonable shot. We have actually quickly end up being the No. 1 sports forecast market in the U.S., and our organic growth speaks with the strength of our item and the passion of our neighborhood."


Scrutinized video gaming


Novig's growth comes at a time when both sweepstakes operators and prediction platforms have dealt with legal problems in the U.S. Novig operates under the sweepstakes model, which has actually run into regulatory problems, specifically in states with legalized sports betting and/or iGaming.


Connecticut, Montana, and Nevada have banned sweepstakes companies from operating. New york city lawmakers passed a prohibition costs previously this year, and California, which does not have any type of legalized online betting, had a sweepstakes-ban bill introduced this summer.


Meanwhile, prediction market business like Kalshi are battling several cease-and-desist orders. The platform, which uses sports-related agreements and is regulated by the Commodity Futures Trading Commission, suffered an obstacle earlier this month when a Maryland judge ruled versus Kalshi.