NYC Sports Prediction Market Raises $75M
New York-based Novig has raised $75 million to build a sports prediction market. The venture is part of a trend in the city's tech scene focused on new ways to price risk and build real-time analytics platforms. These platforms pioneer technologies that have potential applications for data products in the insurance and financial sectors.
- The $75 million Series B funding round was led by Pantera Capital, a venture firm focused on blockchain, and included participation from other investors like Multicoin Capital and Makers Fund. This investment brings Novig's total capital raised to over $105 million and values the company at approximately $500 million. - Novig operates as a peer-to-peer sports trading platform, which means users trade against each other rather than against the "house" as with traditional sportsbooks. This model allows market forces to set the odds. The platform is commission-free for retail traders, with revenue generated from fees charged to institutional participants. - The company was founded in 2021 by Jacob Fortinsky and Kelechi Ukah, two Harvard graduates. Fortinsky, the CEO, was an avid sports bettor who became frustrated with the practices of traditional sportsbooks, which led him to create the exchange. - Novig reported a tenfold increase in trading volume in 2025, with an annualized volume now exceeding $4 billion. The company claims that about 23% of its users are profitable, a significant increase compared to the estimated 2% on traditional sportsbooks. - The company is actively seeking to move from a state-by-state regulated model to federal oversight. In January 2026, Novig submitted an application to the Commodity Futures Trading Commission (CFTC) to become a licensed Designated Contract Market (DCM), which would allow it to operate in all 50 states. - The new funding will be used to enhance product development, increase market liquidity, and introduce advanced trading tools for its users. The company has expanded its team to over 50 employees to support its growth. - The investment in Novig reflects a broader trend of crypto-native venture firms investing in prediction markets. Competitors in the prediction market space, such as Kalshi and Polymarket, have recently achieved multi-billion dollar valuations.
