Prime Highlights

• Novig secured $75 million in funding, strengthening its position to compete with major platforms like Kalshi and Polymarket.
• The company is introducing a peer-to-peer model that removes the traditional “house edge,” aiming to offer better value to users.

Key Facts

• The funding round was led by Pantera Capital and values Novig at $500 million.
• Novig is seeking approval from the Commodity Futures Trading Commission to expand its operations across the United States.

Background:

Novig, a sports-focused prediction market startup, has raised $75 million in a Series B funding round led by Pantera Capital. The funding values the company at $500 million and puts it in competition with major platforms like Kalshi and Polymarket.

Novig is trying to change how sports betting works. Instead of users betting against a company, its platform lets people trade directly with each other. It also does not charge fees to regular users, but instead earns from larger institutional players. The company says this gives better value to everyday users.

Novig was founded in 2021 by Jacob Fortinsky and Kelechi Ukah while they were studying at Harvard. They later joined Y Combinator, which helped their business grow. The company also faced regulatory challenges from the start. It first registered as a sports betting operator in Colorado, then shifted to a sweepstakes model, but both approaches limited its ability to expand across the country.

Now, Novig is applying for approval from the Commodity Futures Trading Commission to operate more widely in the United States. The company expects a decision within six months, which could affect its future growth.

Even with this growth, concerns remain. Some state authorities believe prediction markets are similar to gambling. Novig, however, says its platform works more like financial trading than traditional betting.

With new funding and a focus on sports, Novig aims to attract users by offering a simpler and more transparent platform.