Novig Bags $75M Series B to Build America’s Top Sports Prediction Market

Key Takeaways

1. Novig closed a $75 million Series B round led by Pantera Capital, bringing total capital raised past $105 million and valuing the company at $500 million.
2. Trading volume exploded 10x in 2025, with annualized volume now exceeding $4 billion across its commission-free, peer-to-peer sports exchange.
3. The company has applied for a CFTC Designated Contract Market (DCM) license, which would allow it to operate as a federally regulated exchange in all 50 U.S. states.
4. Investors include Pantera Capital, Multicoin Capital, Makers Fund, Edge Equity, Forerunner, Perceptive Ventures, and NFX, a mix of leading crypto-native and consumer venture firms.

Quick Recap

New York-based sports prediction market Novig announced the close of a $75 million Series B funding round on February 18, 2026, led by crypto venture heavyweight Pantera Capital. The round, which also drew participation from Multicoin Capital, Makers Fund, Edge Equity, and returning backers Forerunner, Perceptive Ventures, and NFX, values the startup at $500 million. The fresh capital comes after Novig reported a 10x surge in trading volume during 2025, with annualized volume now exceeding $4 billion. Co-founder and CEO Jacob Fortinsky confirmed the raise through an official press release and social media channels.

We are building the sports prediction market that Vegas fears.

The sports betting system is broken, and today we’re another step closer to fixing it.

We just closed a $75M Series B led by @PanteraCapital.

As we grow, we remain committed to our mission of building the most… pic.twitter.com/MLR4LGPZOF

— Novig (@Novig) February 18, 2026

From Sweepstakes to Regulated Exchange

Novig’s journey to this milestone has not been linear. Founded in 2021 by Harvard graduates Jacob Fortinsky and Kelechi Ukah, the company initially launched as a licensed sportsbook in Colorado in late 2023 before pivoting in April 2024 to a sweepstakes-based prediction market model. That strategic shift allowed Novig to sidestep state-by-state licensing requirements and reach users across 35+ states using virtual currencies.

The Series B funding will fuel Novig’s transition from its current sweepstakes structure toward becoming a fully regulated prediction market under the Commodity Futures Trading Commission (CFTC). The company has officially submitted its application for DCM status, a move that, if approved (expected within six months), would grant Novig access to all 50 states under a single federal framework.

What makes Novig distinct is its commission-free, peer-to-peer exchange model. Unlike traditional sportsbooks like FanDuel and DraftKings that profit by taking the “vig” (a fee baked into the odds), Novig allows users to trade against each other on an order-book system with no retail commissions. Revenue instead comes from fees charged to institutional participants and liquidity providers. The result: Novig claims its users are 10 times more likely to be profitable than those using traditional sportsbooks, with roughly 20-23% of bettors turning a profit compared to an industry average near 2%.

A Crowded but Fast-Growing Market

Novig’s raise arrives at a time when prediction markets are attracting record levels of capital and user attention. In 2025 alone, roughly $2.7 billion was invested in prediction market startups. The two dominant players, Kalshi and Polymarket, processed a combined $44 billion in trading volume in 2025. Kalshi raised $1 billion at an $11 billion valuation in December 2025, while Polymarket secured roughly $2.15 billion in funding and reached a $9 billion valuation.

However, both Kalshi and Polymarket were initially designed as general-purpose prediction platforms covering politics, economics, and entertainment. Their sports offerings grew organically rather than by design. Novig is betting that a sports-first approach, built specifically for bettors and traders, gives it a structural advantage in the largest segment of the prediction market (sports accounted for 85% of Kalshi’s volume in 2025).

Regulatory dynamics also play a role. Several U.S. states have pushed back against CFTC-regulated platforms like Kalshi offering sports contracts without state gaming licenses. Meanwhile, Sporttrade, a Philadelphia-based sports betting exchange with $36 million in total funding, has also submitted its own CFTC application, seeking a level playing field. The race to become the dominant federally regulated sports exchange is very much on.

Competitive Landscape

Kalshi holds a commanding lead in total volume and regulatory access, making it the default choice for users who want nationwide availability and deep liquidity across multiple categories. Sporttrade, meanwhile, operates as the only state-licensed sports betting exchange in the U.S., giving it regulatory credibility but limiting its geographic reach. Novig differentiates through its zero-commission model and sports-first product design, which has driven rapid organic growth and higher user profitability rates.

Bayelsa Watch’s Takeaway

I think this is a big deal for anyone following the intersection of sports, fintech, and prediction markets. In my experience covering startup funding rounds, a $75 million Series B led by a firm like Pantera Capital at a $500 million valuation is a clear signal that institutional investors see Novig as more than a niche experiment. The 10x volume growth in a single year is the kind of traction that separates real products from hype cycles.

What I find most interesting is the positioning. Novig is not trying to be a general-purpose prediction market. It is laser-focused on sports, and that focus is paying off. The zero-commission model puts real pressure on both traditional sportsbooks and fee-charging prediction platforms. If CFTC approval comes through in the next six months as expected, Novig could become the first purpose-built, federally regulated sports exchange available in every U.S. state.