Novig operates a nationwide exchange where sports fans trade contracts tied to game outcomes with one another, instead of betting against a sportsbook. Front Office Sports reported on September 30 that the company was discussing new financing expected to value it at up to $2 billion.
The financing’s status is unsettled. The Information’s September 30 headline said Novig had raised funding at a $2 billion valuation, while Front Office Sports reported ongoing talks and said Novig confirmed only that it was fundraising. Two Front Office Sports sources expected a winter closing; the round’s size and participants weren’t known.
A customer selects a market tied to a sports result and trades a position with another user; real-time supply and demand move the price. Novig runs the exchange rather than taking the other side of each trade. Sports Business Journal reported that its February product did not charge individual bettors commissions.
The reported valuation ceiling would be four times Novig’s February mark. Sports Business Journal reported a $75 million Series B at a $500 million post-money valuation while the company was preparing to replace its sweepstakes product with a federally regulated prediction market. Co-founder and CEO Jacob Fortinsky said that capital would go toward marketing and new hires.
That transition happened this summer. The Commodity Futures Trading Commission lists Ludlow Exchange, which Novig identifies as its designated contract market, as designated on June 16. Novig said it launched the federally regulated sports market nationwide on August 4.
The August launch added instant live trading and more payment options while keeping a minimum customer age of 21, according to Novig. The company also said cumulative trading volume had passed $6 billion. That measures activity across the exchange, not Novig’s revenue.
Published versions remain available when an article is updated or corrected.
- Revision 1 · Initial publication
Initial publication