Sports Prediction App Novig Secures $18M For Major Expansion

A fast-growing sports forecast market business is poised to make substantial technology and product advances following a significant investment.


- Sweepstakes sports forecast platform got $18 million in financing.
- Novig strategies to use the cash to upgrade present items, add more, and increase payment platforms.
- The app's users play traditional sportsbook markets versus each other, not your home.


Novig, a sweepstakes app that released in September 2024, revealed on Monday that venture capital firm Forerunner led an $18 million Series A funding round. Y Combinator, NFX, Perceptive Ventures, and Gaingels also invested in the forecast market platform that uses commission-free, peer-to-peer sports trading.


"The support from a few of the world's leading tech investors, who think in our mission to democratize sports wagering for good, is a powerful endorsement - not just of what we have actually built, but of the future we're producing," Novig CEO and co-founder Jacob Fortinsky stated. "This funding will enable us to scale our mission across more sports, more formats, and eventually, to more users."


With the brand-new funding, Novig plans to expand into new sports markets and enhance its existing ones, while developing brand-new functions like leaderboards, group contests, and head-to-head trading. Novig stated it wishes to include debit and charge card payments to the app, launch a full web platform, and grow its engineering and item teams with the increase of cash.


Attractive development


Novig's development is one of the main tourist attractions for investors. The business has accomplished a 50x increase in month-to-month trading volume given that last fall and has actually gone beyond 2 billion annualized volume in Novig Cash.
The forecast market company said that more than 90% of its trades are peer-to-peer, which it states helps consumer retention.


"Novig sits at the center of numerous key nonreligious trends in video gaming and entertainment, specifically that customers increasingly are investing their time, energy, and attention with financial products," Fawzi Itani, Principal at Forerunner, stated. "The Novig group brings the most sophisticated and nuanced viewpoint to sports prediction markets. They not just deeply comprehend their target customer, but are building a system that is more reasonable, community-oriented, satisfying, and well, fun."


Peer-to-peer markets


Novig's platform, like many sweepstakes gaming operators, offers users totally free coins at sign-up. Customers can likewise purchase Novig Cash, which can be redeemed for cash and rewards.


The sports forecast app, established by Fortinsky and Kelechi Ukah, operates in 41 U.S. states and offers lots of traditional-sportsbook markets on MLB, NFL, WNBA, tennis, PGA Tour, UFC, and more. Users can bet the chances noted or set their own, all while betting each other, not the house.


"What we're developing isn't simply sports predictions - it's a real peer-to-peer market," Fortinsky said. "Our company believe users be worthy of a system that rewards ability, reflects true supply and demand, and provides every fan a reasonable shot. We have actually quickly become the No. 1 sports forecast market in the U.S., and our natural development talks to the strength of our item and the passion of our neighborhood."


Scrutinized video gaming


Novig's growth comes at a time when both and forecast platforms have dealt with legal problems in the U.S. Novig runs under the sweepstakes design, which has run into regulatory problems, specifically in states with legalized sports betting and/or iGaming.


Connecticut, Montana, and Nevada have banned sweepstakes business from operating. New york city lawmakers passed a restriction bill earlier this year, and California, which does not have any kind of legalized online betting, had a sweepstakes-ban costs presented this summer season.


Meanwhile, prediction market business like Kalshi are battling several cease-and-desist orders. The platform, which uses sports-related agreements and is managed by the Commodity Futures Trading Commission, suffered a problem previously this month when a Maryland judge ruled against Kalshi.