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

- Sweepstakes sports forecast platform picked up $18 million in funding.
- Novig plans to utilize the cash to upgrade current products, include more, and increase payment platforms.
- The app's users play conventional sportsbook markets versus each other, not your home.

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

"The assistance from some of the world's leading tech investors, who think in our mission to democratize sports wagering for excellent, is an effective endorsement - not just of what we have actually constructed, however of the future we're creating," Novig CEO and co-founder Jacob Fortinsky stated. "This funding will permit us to scale our mission throughout more sports, more formats, and ultimately, to more users."

With the brand-new funding, Novig plans to expand into brand-new sports markets and boost its existing ones, while establishing new functions like leaderboards, group contests, and head-to-head trading. Novig stated it desires to add debit and credit card payments to the app, launch a complete web platform, and grow its engineering and product groups with the influx of money.

Attractive development

Novig's development is among the piece de resistances for investors. The company has actually accomplished a 50x increase in regular monthly trading volume because last fall and has actually surpassed 2 billion annualized volume in Novig Cash.
The prediction market company said that more than 90% of its trades are peer-to-peer, which it states helps client retention.

"Novig sits at the center of a number of key secular patterns in gaming and home entertainment, particularly that consumers progressively are spending their time, energy, and attention with monetary items," Fawzi Itani, Principal at Forerunner, said. "The Novig team brings the most advanced and nuanced viewpoint to sports prediction markets. They not only deeply comprehend their target client, but are building a system that is more reasonable, community-oriented, satisfying, and well, fun."

Peer-to-peer markets

Novig's platform, like numerous sweepstakes gaming operators, uses users complimentary coins at sign-up. Customers can likewise purchase Novig Cash, which can be redeemed for money and prizes.

The sports prediction app, established by Fortinsky and Kelechi Ukah, runs in 41 U.S. states and offers many traditional-sportsbook markets on MLB, NFL, WNBA, tennis, PGA Tour, UFC, and more. Users can wager the odds listed or set their own, all while betting each other, not your home.

"What we're constructing isn't just sports forecasts - it's a real peer-to-peer market," Fortinsky stated. "We believe users should have a system that rewards ability, shows real supply and need, and gives every fan a fair shot. We've rapidly end up being the No. 1 sports forecast market in the U.S., and our organic growth speaks with the strength of our product and the passion of our community."

Scrutinized gaming

Novig's growth comes at a time when both sweepstakes operators and prediction platforms have actually dealt with legal concerns in the U.S. Novig runs under the sweepstakes model, which has encountered regulatory problems, specifically in states with legalized sports wagering and/or iGaming.

Connecticut, Montana, and Nevada have actually prohibited sweepstakes business from operating. New York legislators passed a restriction bill previously this year, and California, which does not have any kind of legalized online gambling, had a sweepstakes-ban bill presented this summer.

Meanwhile, prediction market companies like Kalshi are fighting several cease-and-desist orders. The platform, which provides sports-related contracts and is managed by the Commodity Futures Trading Commission, suffered a problem earlier this month when a Maryland judge ruled against Kalshi.