Novig, a sports-focused prediction-market startup, has raised $75 million in a Series B at a $500 million post-money valuation to compete with Kalshmi and Polymarket.

Pantera Capital led the $75 million round, with the venture taking a majority stake in the round and investors holding roughly 7% equity.

The company is moving away from its dual-currency sweepstakes model amid regulatory pressures and pursuing federal recognition through the CFTC.

Novig plans to enable easier token-based buying and selling of prediction-market contracts within its app.

This brings Novig’s total funding to about $105 million since its 2024 founding, and underscores its ambition to scale rapidly.

Growth strategy includes expanding marketing, growing the team from 14 to about 50, and launching a loyalty program to draw users away from incumbents like DraftKings and FanDuel.

Pantera highlighted the broader opportunity in prediction markets and noted Novig may offer better odds, with some markets allowing users to set their own odds and reporting higher profitability for users.

Co-founder Fortinsky frames prediction markets as converging with financial trading and envisions the platform as part of fan engagement rather than gambling.

Regulatory and ethical considerations are acknowledged, including debates over whether prediction markets are gambling and the role of regulators such as state authorities and the CFTC.

Novig emphasizes a trader-first, peer-to-peer model with fewer middlemen and profit opportunities for traders, aiming to outperform traditional platforms.

Industry context shows traditional sports betting faces pressures while prediction markets attract fast funding and rising valuations, signaling a shift toward peer-to-peer forecasting.

The funding occurs amid a downturn in the crypto market, as prediction-market ventures attract crypto-focused VC seeking diversification.