Novig, a sports betting startup founded by Harvard University alumni, secured $75 million in Series B funding led by Pantera Capital, the company announced Wednesday. The new investment values Novig at $500 million and will be used to expand marketing efforts and grow its team, currently at 50 employees.
The company’s origins trace back to 2021, when Jacob Fortinsky, then a student, noticed friends with sophisticated sports betting models facing limitations or outright bans from traditional sportsbooks due to their consistent winning streaks. “I was really surprised that it was such a common practice, that they basically treated any winning sports bettor the same way a casino treats a card counter,” Fortinsky, now 28 and Novig’s CEO, told reporters.
Fortinsky partnered with Kelechi Ukah, a fellow Harvard student, to create a betting platform that eliminated the “vig” – the commission charged by traditional sportsbooks. Initially, Novig pursued a state-by-state licensing approach, launching in Colorado in October 2023. Although, Fortinsky expressed frustration with state regulators, alleging they prioritized protecting existing operators and their tax revenues over fostering innovation.
In April 2024, Novig shifted its strategy, abandoning its Colorado license and adopting a sweepstakes model. This allowed the company to operate in more states by offering bets with virtual currencies redeemable for real prizes, circumventing stricter regulations. Simultaneously, Novig transitioned to a prediction market model, where users trade contracts based on the probability of event outcomes, rather than betting against a traditional bookmaker.
Novig currently operates in 42 states, allowing users to wager with “Novig Coins” or purchase “Novig Cash” for real-money redemption. However, the sweepstakes model has faced legal challenges, with New Jersey and California banning similar games in 2023, creating uncertainty for Novig’s future expansion.
The company is now seeking approval from the Commodity Futures Trading Commission (CFTC) to operate as a designated contract market, a designation already granted to Kalshi in 2020. CFTC approval would legalize Novig’s operations nationwide. Fortinsky expressed optimism about receiving the necessary approvals in the coming months.
The surge in prediction markets has attracted significant investment. Kalshi and Polymarket raised multiple funding rounds in 2025, achieving valuations of $11 billion and $9 billion, respectively. Novig previously raised $18 million in a Series A round in August, valuing the company at $90 million, and has received backing from Y Combinator and Hall of Fame quarterback Joe Montana.
The rise of prediction markets has prompted established sports betting giants to respond. DraftKings and FanDuel, parent company Flutter Entertainment, have both launched their own prediction markets in recent months, after DraftKings CEO Jason Robins initially dismissed the model as “structurally limited” just three months prior. Robins, during a recent quarterly earnings call, described predictions as “the most exciting growth opportunity” since the repeal of PASPA in 2018, the Supreme Court decision that allowed states to legalize sports betting.
Fortinsky emphasized Novig’s focus on sports betting, differentiating it from competitors like Kalshi, which also offers markets on politics and other events. “Our goal is to be the largest sports betting platform in the world,” he stated. Novig plans to launch a loyalty program in the coming months and intends to monetize the platform by charging commissions to institutional traders and liquidity providers once it reaches $1 billion in monthly trading volume. Current monthly volume is around $300 million, significantly less than Kalshi’s $2 billion weekly transaction volume.
