Novig Scores $75M Series B to Build a Federally Regulated Sports Prediction Market

NEW YORK, NY – February 18, 2026 – Novig, a fast-growing sports trading platform, announced today it has closed a $75 million Series B funding round, signaling a significant escalation in its challenge to the traditional sports betting industry. The round, led by crypto venture capital giant Pantera Capital, brings Novig's total funding to over $105 million and provides a war chest to accelerate its mission of creating a more transparent and equitable market for sports traders.

The investment follows a period of explosive growth for the company, which reported a tenfold increase in trading volume throughout 2025 and currently boasts an annualized trading volume exceeding $4 billion. This new capital is earmarked for aggressive product development, deepening market liquidity, and a strategic push for federal regulation that could see the platform available nationwide.

Unlike conventional sportsbooks that profit from user losses in an "against-the-house" model, Novig operates as a peer-to-peer exchange. This structure, which functions like a stock market with an order book, allows users to trade on sports outcomes directly with each other at market-driven odds, eliminating the built-in house edge known as the "vig" or commission.

"Our mission is to democratize and financialize sports markets," said Jacob Fortinsky, Co-Founder and CEO of Novig. "We leverage [prediction market technology] to fix broken markets where demand already exists."

A New Playbook for Sports Betting

At the core of Novig's strategy is a fundamental rejection of the sportsbook model that has dominated the industry for decades. Traditional platforms are often criticized for offering unfavorable odds, limiting successful players, and profiting directly from their customers' losses. Novig aims to dismantle this structure by creating what it calls a "trader-first" environment.

The platform's commission-free, peer-to-peer system allows users to set their own odds and trade positions, fostering a dynamic marketplace. This approach, the company claims, results in demonstrably better outcomes for its users. According to Novig, its users are ten times more likely to be profitable compared to those on traditional sportsbooks, citing a 23% user profitability rate versus an industry average estimated at just 2%.

"Novig combines the cultural heartbeat of sports with the transparency and efficiency of prediction markets," stated Co-Founder and CTO Kelechi Ukah. "We are delivering a better exchange that is built by sports traders, for sports traders."

This model appears to be resonating with users. The platform’s mobile app has garnered strong positive reviews, particularly for its intuitive interface and the core value proposition of better odds. Users frequently praise the ability to trade without a house commission, a feature that directly impacts potential returns and aligns the platform's success with that of its users rather than being in opposition to it.

The Federal Gambit: A Push for Nationwide Regulation

Perhaps the most ambitious part of Novig's plan is its pursuit of federal oversight. The company has officially submitted an application to the Commodity Futures Trading Commission (CFTC) to become a licensed Designated Contract Market (DCM). This move is a critical step away from the complex and costly state-by-state licensing patchwork that governs most U.S. sports betting.

If successful, a DCM license would place Novig under a single federal regulatory body, allowing it to operate legally across all 50 states. This would not only grant it unparalleled market access but also lend it the credibility and stability of a federally regulated financial exchange. The company would join a select group of prediction markets, like Kalshi, that operate under this framework.

The path to a DCM license is notoriously rigorous and can be lengthy; some financial technology companies have spent years in the application process. However, Novig's leadership has expressed optimism for a relatively swift approval, potentially transitioning from its current sweepstakes-based model to a fully regulated exchange within the year. This move is part of a broader industry trend, with other exchange-style platforms like Sporttrade also seeking a federal framework, arguing it is better suited to their low-margin business models than state-level gambling regulations.

Crypto VCs Bet Big on Market Disruption

The composition of Novig's investors underscores the disruptive potential of its technology. The Series B round was led by Pantera Capital, a pioneering venture firm focused exclusively on blockchain technology and digital assets. The participation of other crypto-native investors like Multicoin Capital highlights a growing conviction that principles from decentralized finance—such as transparency, efficiency, and the removal of intermediaries—can reshape traditional industries.

These investors see Novig not just as a betting app, but as a piece of financial market infrastructure. The platform's order-book mechanics, focus on liquidity, and peer-to-peer architecture mirror those of cryptocurrency exchanges. For these VCs, the investment aligns with a broader thesis of financializing new asset classes and using technology to create more efficient markets.

Paul Veradittakit, Managing Partner at Pantera Capital, praised this approach. "Novig is proving that prediction markets can fundamentally reshape sports betting by removing the exploitative middleman," he said. "Their peer-to-peer exchange delivers what traditional sportsbooks can't: better odds, fairer market structure, and alignment between platform success and user profitability... it's clear this is a foundational change to the industry."

Navigating a Crowded and Evolving Field

Novig enters a fiercely competitive arena. The global sports betting market was valued at over $110 billion in 2025 and continues to expand rapidly. While Novig directly challenges giants like FanDuel and DraftKings, it also competes within the burgeoning prediction market sector, which saw volumes grow nearly fourfold to $64 billion in 2025.

Platforms like Kalshi and Polymarket have already established significant liquidity and user bases in prediction markets, though they are not exclusively focused on sports. Novig's dedicated sports-centric approach is its key differentiator. However, to truly compete, it must continue to address user feedback. While its iOS app is highly rated, some users have reported stability issues on Android and have called for more advanced trading tools and deeper analytics.

With the new $75 million in funding, Novig plans to tackle these challenges head-on. The company is expanding its team, which has already grown to over 50 employees, and will focus on enhancing its product with first-of-its-kind functionality. A major goal is to attract more institutional liquidity, which is crucial for ensuring tight spreads and the ability for traders to execute large orders instantly, further solidifying its position as a true financial-grade market for sports.