Novig Raises $75M to Replace the Traditional Sportsbook with a Peer-to-Peer Exchange

The US sports betting market has expanded rapidly since widespread legalization in 2018, but the dominant business model still functions on a structural tilt against the user: sportsbooks embed their margin into every transaction, set prices with little transparency, and routinely limit or ban participants who win too consistently. Fewer than 2% of users on traditional sportsbooks turn a consistent profit – not because most sports bettors lack skill, but because the house extracts value from every wager before the outcome is even determined. Novig addresses this structural problem at its root by operating as a commission-free, peer-to-peer exchange where traders compete directly against one another on sports outcomes, rather than against the platform itself. By eliminating the embedded margin known as the “vig,” Novig produces tighter spreads and market-driven pricing that rewards analytical bettors on a genuinely level playing field – the platform reports that its users are more than ten times as likely to be profitable as those on conventional sportsbooks. With annualized trading volume now exceeding $4B following a 10x increase in 2025, and a formal application filed with the Commodity Futures Trading Commission (CFTC) to become a federally regulated exchange operating in all 50 states, the company is positioning the prediction market model as a structural replacement for the incumbent sportsbook industry.

AlleyWatch sat down with Novig Cofounder and CEO Jacob Fortinsky to learn more about the business, its future plans, recent funding round, and much, much more…

Who were your investors and how much did you raise?Novig has raised $108M to date from some of Silicon Valley’s top investors including Pantera, Forerunner, Multicoin, Lux, YC, NFX, Paul Graham, and Joe Montana. Our last round was a $75M Series B led by Pantera Capital.

Tell us about the product or service that Novig offers.Novig is the fastest-growing sports prediction market in America. It is the only platform to offer commission-free, peer-to-peer trading on sports. We deliver better pricing, full transparency, and a more efficient market structure for users by eliminating the traditional sportsbook model.By eliminating the vig, unfair odds, and punitive limits on winning players, Novig has built the industry’s most equitable sports prediction platform.

What inspired the start of Novig?Novig was inspired by my early fascination with prediction markets and the idea that markets, when designed correctly, can surface truth more effectively than almost anything else. In high school and college, I spent a lot of time betting on politics. What hooked me wasn’t just the chance to make money; it was the feeling that I had spotted a real market inefficiency and could gain an edge over other participants. It felt meritocratic and intellectually honest.

When I later shifted that same curiosity to sports betting, I expected an even better version of that experience. Sports have massive amounts of data, constant information flow, and millions of passionate participants — it should be the perfect environment for efficient markets. Instead, I found the opposite: the ecosystem was outdated and fundamentally unfair. Sports books acted as the house, setting opaque prices and limiting or banning winning players.

Many of my friends and I had been limited and shut out simply for being profitable, which made it clear the system wasn’t built for participants to win; it was built for the house to extract value.

Novig came from wanting to fix that.

How is Novig different?We set out to build a true exchange, more like the political prediction markets I admired, where users trade against each other, not against a book, and where the platform’s incentives are aligned with its customers. The goal is a more transparent, efficient, and fair market, one where skill is rewarded, not penalized.

Traditional sportsbooks build in large margins and hidden fees, called “vig,” which means users are consistently paying a premium every time they place a bet. Because Novig operates as an exchange, prices are more efficient and spreads are tighter — so traders keep more of what they win. It’s a structurally better deal.

What market does Novig target and how big is it?Novig is built for the sports betting community, a global industry with more than $2T in annual betting volume.

What’s your business model?Novig generates revenue by charging institutional market makers. This is what allows us to be the only platform to offer truly commission-free trading to retail users.

How are you preparing for a potential economic slowdown?We’re focused on building the most efficient, user-friendly product. Economic cycles fluctuate, but sports don’t stop: seasons continue, fans stay passionate, and communities remain engaged. We serve that passion in a way that delivers real value. If we stay disciplined, customer-centric, and mission-driven, we believe we’re well positioned regardless of broader macro conditions.

What was the funding process like?From the beginning, we’ve been intentional about choosing long-term partners, not just capital. We ask ourselves: Do we share values? Do we trust each other? Can we see ourselves working together for the next decade? Alignment matters just as much as the check size.

We’ve been thoughtful about bringing in investors who offer strategic expertise in areas that matter most to our growth. We’ve prioritized partners who not only believe deeply in our vision and our ability to execute, but who can actively help us accelerate it. Those are the investors who remain aligned and valuable over the long term.

What are the biggest challenges that you faced while raising capital?We’ve been fortunate to bring on incredible investors, but the path hasn’t always been straightforward. At one point, we raised a bridge round while executing a pivot, which requires investors to believe in our team’s ability to reinvent the business. Additionally, we operate in a relatively new category, and educating investors has been part of the journey. Some are hesitant to back emerging spaces, so we’ve had to be clear, disciplined, and compelling in articulating both the opportunity and our differentiated approach.

What factors about your business led your investors to write the check?

We sit at the intersection of two converging trends: mainstream adoption of sports betting and the growing credibility of prediction markets as a more efficient, transparent way to price outcomes.

Within prediction markets, we’re focused on what we believe is the largest commercial opportunity: sports. Sports naturally lend themselves to market-based forecasting with constant data, passionate fans, and real-time information flow. Our goal is to build the most intuitive, liquid, and trusted sports prediction market in the world.

Within prediction markets, we’re focused on what we believe is the largest commercial opportunity: sports. Sports naturally lend themselves to market-based forecasting with constant data, passionate fans, and real-time information flow. Our goal is to build the most intuitive, liquid, and trusted sports prediction market in the world.

On the sports betting side,the industry is evolving. Users are becoming more sophisticated and want better pricing, transparency, and innovative products. While betting and prediction markets are converging, our focus is on building deeper, more dynamic markets with advanced stats, player performance, and formats that appeal to the next generation of analytically minded fans.

What are the milestones you plan to achieve in the next six months?

Our top priority is accelerating growth while continuing to reinvest in the product and the ecosystem.

That starts with onboarding more users and expanding our reach, making it easier than ever for both new and experienced traders to discover, understand, and participate in sports prediction markets. At the same time, we’re focused on increasing trading volume and liquidity, because deeper markets create a better experience for everyone.

Ultimately, everything we’re doing ladders up to building an equitable, trader-first marketplace that scales responsibly, earns trust, and becomes the default home for sports prediction trading.

What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?Stay alive. We executed multiple pivots to enable us to continue to get feedback from our users and after 4 years Novig really hit escape velocity.

Where do you see the company going now over the near term?

We’ve applied for CFTC registration to operate as a federally regulated exchange, which would allow us to launch nationally. Our focus is on launching and being available across all 50 states.

What’s your favorite winter destination in and around the city?Skiing in Vermont, where we just hosted our company-wide retreat.