Novig Announces $6.4M in Seed Funding from Leading Investors Ahead of Launch in Colorado

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Aug 22, 2023, 08:00 ET

Novig receives funding from 30+ investors to further its mission to democratize sports betting for good.

NEW YORK, Aug. 22, 2023 /PRNewswire/ -- Novig, a high-frequency, commission-free sports betting exchange, announced today that it has completed a seed funding round totaling $6.4 million from a group of prominent investors ahead of its launch in Colorado. Funding was led by Lux Capital with participation from Y Combinator, Paul Graham, Joe Montana, Soma Capital, Innospark Ventures, Rebel Fund, Bayhouse Capital, Arash Ferdowsi (Dropbox), Austen Allred, Alan Rutledge, Ravi Sheth, Archon Capital, Palm Drive Capital, TRAC, True Culture Fund, CapitalX, and many others.

This recent investment comes at a critical time. $300B is wagered on sports in the US each year, all of which is bet against retail sportsbooks, which have egregious 7-10% margins, discriminatory and inefficient practices, and a stale betting experience. Novig eliminates the need for traditional sportsbooks by allowing users to bet directly against friends or the market, rather than the house, making the betting experience more efficient, fair, and profitable.

Novig is positioned to become a leading innovator in sports betting with its unique focus on quantitative research and high-frequency trading, and by introducing state-of-the-art financial exchange technology to the industry that has not seen serious technological or product innovation in years.

"Novig is an absolute game changer. The future of sports betting is here," stated Joe Montana, investor and Hall of Fame NFL quarterback.

Rather than charging retail users, Novig generates revenue from three main sources: institutional traders, data monetization, and internal market making.

Novig's founders, Jacob Fortinsky, CEO, and Kelechi Ukah, CTO, are recent Harvard graduates who are sharp sports bettors with previous experience at Jane Street and Bank of America, as well as in machine learning and politics. They founded Novig with the belief that the inefficient and exploitative sports betting industry will be transformed by adopting the peer-to-peer exchange model.

"We're honored to have the support of so many of the world's leading tech investors, who believe in our mission to democratize sports betting for good." Jacob Fortinsky stated. He continued, "Our vision is clear: to reshape the sports betting landscape that has long favored exploitation over innovation, and to usher in an era of integrity, transparency, and empowerment. Together, we're rewriting the rules and putting the power back in the hands of bettors."

In advance of the platform's launch in Colorado this October, Novig has entered a 10-year partnership with Full House Resorts and its Bronco Billy's Casino property in Cripple Creek, CO.

This follows Novig's successful beta test which saw 200 users compete in a two-week long pre-launch trading tournament where 15,500 orders were placed across 1,290 markets. Novig's platform provides instant confirmation of live bets, compared to sportsbooks that can take up to 80 seconds for trader approval, and our matching engine is 100x faster than the leaders in the industry.

"We've been overwhelmed by the positive reception of our product from Novig's first users and are excited to bring our product to regulated markets beginning this fall in Colorado," said Fortinsky.

Upon launch, NFL, NBA and MLB will be available. Customers will be able to place bets on the Moneyline, Point Spread, Game Totals, and Team Futures, both pre-game and in-game.

ABOUT NOVIG
Founded by Jacob Fortinsky and Kelechi Ukah, Novig is a high-frequency, commission-free sports betting exchange that enables users to bet directly against friends or the market, rather than the house. Based in New York City, the wider team originates from top-tier Silicon Valley and Wall Street firms. Novig is set to launch this fall in Colorado before expanding nationally next year. For more information or to sign up for early access to Novig, visit www.novig.us or follow on Twitter at @novig_app.

SOURCE Novig