Novig, a U.S.-based peer-to-peer sports prediction platform, has successfully closed an $18 million Series A funding round as it looks to deepen its foothold in the sports betting market. The investment, announced on August 11, 2025, was led by Forerunner and included participation from existing backers Y Combinator, NFX, Perceptive Ventures, and Gaingels.
Co-founded by Jacob Fortinsky and Kelechi Ukah, Novig is aiming to reshape sports predictions by offering a decentralized, user-versus-user betting marketplace. Distinct from traditional sportsbooks, the platform enables users to trade directly with each other, removing the house from the equation and eliminating hidden fees or skewed odds.
Fortinsky emphasized this vision in a press release, stating, “What we’re building isn’t just sports predictions–it’s a true peer-to-peer market”.
Explosive Growth and Market Positioning
Since launching publicly in September 2024, Novig has scaled rapidly. The company reports a 50-fold increase in monthly trading activity and has surpassed $2 billion in annualized trading volume through its in-app currency, Novig Cash. More than 90% of trades on the platform are now peer-to-peer, signaling robust product-market alignment.
Users are more engaged as well—Novig’s retention rates reportedly triple those of conventional sports betting platforms. New users receive a starter balance of Novig Coins and Novig Cash, allowing them to try the service without making an initial deposit.
Fortinsky said the latest funding will fuel expansion across additional sports categories and formats. Plans include launching a browser-based platform, supporting fiat payment methods, and adding new features such as group contests, leaderboards, and head-to-head trading competitions.
Legal Gray Areas Raise Regulatory Questions
Despite the platform’s growth, Novig operates within a legal gray area. The company uses a sweepstakes model and does not hold a sports betting license or Commodity Futures Trading Commission (CFTC) registration. Unlike regulated operators such as Kalshi or Polymarket, Novig has not disclosed plans to pursue regulatory approval.
In Arizona, state regulators issued the company a cease-and-desist letter as part of a wider crackdown on sweepstakes-based gambling platforms. Additionally, a recent American Gaming Association (AGA) study found that most consumers view sweepstakes casinos as equivalent to gambling, intensifying the debate around such models.
The platform had previously operated as a licensed exchange in Colorado but withdrew following regulatory hurdles, eventually pivoting to its current sweepstakes-based approach.
Despite these challenges, investor confidence remains strong. “Novig sits at the center of several key secular trends in gaming and entertainment, namely that consumers increasingly are spending their time, energy, and attention with financial products,” said Fawzi Itani, Principal at Forerunner.
He continued, “The Novig team brings the most sophisticated and nuanced perspective to sports prediction markets. They not only deeply understand their target customer, but are building a system that is more fair, community-oriented, rewarding, and well, fun.”
Facing a Competitive and Growing Market
With the sports prediction sector gaining momentum, Novig is competing against a rising tide of entrants. Polymarket is preparing to re-enter the U.S. market through QCEX after raising $200 million, while Kalshi’s recent Series C valued it at $2 billion. Railbird, another CFTC-regulated platform, is reportedly in talks with DraftKings.
Source:
“Novig Raises $18 Million Series A to Scale Peer-to-Peer Sports Prediction Market; Becomes Fastest-Growing Platform in Category”, prnewswire.com, Aug 11, 2025.
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