How Novig became the third biggest prediction market site despite launching only months ago
That includes the sports-focused prediction market Novig, which only launched as a federally regulated prediction market in August, but has already claimed the number three spot by one widely used industry metric.
Key points
- But a shift in the legal landscape led Novig this year to become a federally regulated prediction market, helping it raise a new $75 million Series B round in February at a $500 million valuation.
- Why sports only Like other prediction markets, Novig makes the case that it offers sports traders a better deal than conventional betting platforms.
- Novig’s early success comes at a time when conventional sports betting platforms like DraftKings and FanDuel are diving into the prediction markets industry too, while a host of smaller startups are also fighting to carve out a niche.
Over the past 30 days, Novig handled $1.8 billion in trading volume on U.S.-regulated exchanges, according to the PM Pulse, a newsletter that tracks prediction market volume using data from research firm Aldrin.
Additional details
- Since bursting on the scene two years ago, prediction markets have become one of the buzziest new sectors in finance, pulling in billions of dollars in revenue, and driving daily news headlines.
- “There are very few companies I think outside of AI that have achieved our level of growth in the span of two months,” Novig cofounder and CEO Jacob Fortinsky told Fortune.
- Novig’s ascent is notable given how little money it has raised compared to other prediction markets.
- While Novig has raised $105 million in total, that figure is dwarfed by Kalshi’s fundraising, which amounts to roughly $3.8 billion across 13 funding rounds, according to Tracxn data, including two $1 billion rounds since May.
- In the 30 days after the campaign launched in September, Novig says first-time deposits rose 362% and mobile app downloads jumped 261%, compared with the 30 days before, according to internal data the company provided.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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