Novig has raised $75 million in a Series B funding round as the company works to reposition itself within the regulated prediction market sector. The latest investment values the New York-based sports trading platform at approximately $500 million and increases its total capital raised to more than $105 million.

Asset manager Pantera Capital led the round, with participation from Multicoin Capital, Makers Fund, and Edge Equity. Existing investors Forerunner Ventures, Perceptive Ventures, and NFX also joined the round. The announcement follows an $18 million Series A completed in September 2025.

The company disclosed that it has recorded a tenfold increase in trading volume during 2025, with annualized volume surpassing $4 billion. Novig reports more than 100,000 traders on its platform and says it now operates in more than 35 states after previously offering its sweepstakes model in as many as 42 states and Washington, D.C.

Funding Fuels Push Toward Federal Oversight

Novig has applied to the Commodity Futures Trading Commission (CFTC) to become a licensed Designated Contract Market. If approved, the status would allow the company to offer event contracts nationwide under federal supervision. The move comes as other prediction market operators such as Kalshi and Polymarket have launched exchanges through the CFTC framework.

Novig filed its application under Ludlow Exchange LLC less than a month before announcing the funding round. Gaining approval would enable the company to expand into all 50 states, subject to the outcome of court disputes in Nevada and Massachusetts.

Co-founder and CEO Jacob Fortinsky described the company’s direction in a statement: “We believe we’re at the beginning of a much larger paradigm shift. Sports betting and financial markets are converging, and prediction markets are evolving into true trading platforms shaped by the same principles that power modern exchanges: transparency, efficiency, liquidity, and fairness. That’s exactly what the next generation of traders expect, and exactly what Novig was built to deliver from day one.”

Fortinsky also addressed the firm’s choice of investors. “We chose to partner with the best crypto venture firms in the world to further accelerate our plans to make Novig the most efficient and liquid sports prediction market in the world,” he said. “Others are using prediction market technology to financialize new markets with unproven demand. We leverage it to fix broken markets where demand already exists.”

From State Licenses to Sweepstakes to Exchange Model

Founded in 2021 by Fortinsky and Kelechi Ukah, Novig initially sought state sports betting licenses and launched as a betting exchange in New Jersey and Colorado. After leaving Colorado, the company shifted in 2024 to a sweepstakes-based approach that used a dual-currency system and offered peer-to-peer prediction contests without commission fees. According to company data, more than half of its sweepstakes activity was peer-to-peer.

As several states restricted sweepstakes gaming and New Jersey approved a ban on dual-currency games, Novig exited certain markets and began preparing for a federally regulated structure. The company’s exchange allows users to trade spreads, moneylines, totals, and proposition markets directly against one another rather than against the house.

Ukah, the company’s co-founder and chief technology officer, said: “Novig combines the cultural heartbeat of sports with the transparency and efficiency of prediction markets. Most prediction market volume today is on sports, yet those platforms weren’t built with sports or sports bettors in mind. We are delivering a better exchange that is built by sports traders, for sports traders.”

Novig maintains that its model creates different outcomes for users compared with traditional sportsbooks. “Our mission is to democratize and financialize sports markets, and we’re proud of the fact that Novig users are 10 times more likely to win than on traditional sportsbooks,” Fortinsky said.

Pantera Capital’s managing partner Paul Veradittakit emphasized the company’s structure. “Novig is proving that prediction markets can fundamentally reshape sports betting by removing the exploitative middleman,” he said. “Their peer-to-peer exchange delivers what traditional sportsbooks can’t: better odds, fairer market structure, and alignment between platform success and user profitability. When 23% of users are profitable compared to 2% on traditional platforms, it’s clear this is a foundational change to the industry. We’re excited to lead this round and support Jacob, Kelechi, and the team as they build a sports prediction market that actually puts bettors first.”

Novig states that it has expanded its workforce to more than 50 employees, including engineers and traders, as it prepares infrastructure for a regulated exchange. The company says it will use the new capital to advance product development, onboard additional liquidity, and refine features designed for sports-focused traders.