Novig Secures New Capital For Sports Prediction Growth
Novig has raised $75 million in fresh funding to expand its peer-to-peer sports prediction platform. The round was led by Pantera Capital. The raise values the company at $500 million. The company was founded in 2021.
The firm says the funding will support product development. The team also plans to scale operations across the United States. The company wants to bring more users into its prediction exchange.
The platform works as a peer-to-peer marketplace. Users trade sports predictions directly against each other. There is no bookmaker serving as counterparty. Participants can accept odds or set their own. Trades are matched by internal algorithms.
The structure removes the traditional margin used by sportsbooks. Novig believes this improves fairness for users. It also aligns the business model with liquidity rather than customer losses.
Managers at Novig say the approach helps users secure better odds. The firm sees this as a key advantage over legacy sports betting firms.
Demand Rises For Peer-To-Peer Sports Trading
Sports prediction markets are expanding across the US. Legal clarity has changed the landscape. A 2018 Supreme Court decision opened the door for state approval of sports gambling. Subsequent court rulings also widened the types of tradable event contracts.
Novig is positioning itself within this shift. The company says sports trading should be more transparent. The founders argue that traditional platforms take too much from users. They point to high margins and restrictive account practices.
The platform uses two internal currencies. Novig Coins are free tokens. Novig Cash units allow conversion into fiat after successful predictions. The system sits under a sweepstakes legal model.
Novig does not limit winning users. The company highlights that the model relies on volume and commissions. It does not depend on customer losses. Pantera Capital says the company fits within a new generation of consumer trading platforms. They see strong growth ahead.
Regulatory Progress And Exchange Model Expansion
Novig is now applying for approval from the US Commodity Futures Trading Commission. The company expects a decision within six months. The move follows previous regulatory challenges. The company first operated as a licensed betting operator in Colorado. It later shifted to a sweepstakes model.
Each step brought legal complexity. The firm says CFTC oversight will help them operate nationwide. It will also help them gain credibility within financial markets. Co-founder Jacob Fortinsky says the company stands apart from competitors. Kalshi and Polymarket focus on wider prediction topics. Novig stays focused on sports.
The team sees sports as a core part of fan engagement. They believe this makes sports prediction markets more attractive to retail users. Fortinsky says legacy platforms are too expensive. He claims their fees limit the potential return for users. Novig charges no commission to retail traders. Institutional participants cover the platform fees instead.
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Expanding User Base And Institutional Participation
Novig plans to expand its user base through marketing. The team also wants to grow its internal staff. The headcount has increased from 14 to 50 in the last year. The company expects this number to rise. The platform supports major US sports leagues.
These include the NFL, NBA, MLB, NHL and NCAA. UFC markets are also available. Users can trade moneylines and point spreads. Totals and player props are also supported.
Fortinsky says sports prediction deepens fan engagement. He sees trading as part of the overall experience.
The company plans to launch a loyalty programme soon. The team wants to increase retention. They believe the peer-to-peer model will attract more experienced users. The firm also plans to attract institutional traders. They add liquidity to the marketplace. This strengthens the pricing structure.
Novig wants to become the largest sports prediction platform in the world. The founders believe the new funding puts them closer to that goal.
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