Betting exchange Novig raises $6.4m seed round to fuel upcoming launch
NFL legend Joe Montana among group of investors in exchanged-based startup
Exchange-style startup Novig has raised a $6.4m seed round in preparation for its inaugural launch in Colorado.
The betting startup, which was initially backed by renowned startup accelerator Y Combinator, has assembled an expansive list of over 30 investors led by Lux Capital and also featuring NFL legend Joe Montana.
Novig, which is aiming to democratize sports betting by allowing users to make commission-free bets against each other, will be introducing financial-exchange technology to facilitate the type of high-frequency trading that has yet to be rolled out at scale in the regulated US betting space.
“Novig is an absolute game changer,” said Montana. “The future of sports betting is here.”
As a betting exchange, Novig will generate revenue from institutional traders, data monetization, and internal market making, thus eschewing the traditional sportsbook model in which the house books all wagers in return for a commission — or “vig” — that typically ranges from 5 to 10%.
“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,” said CEO Jacob Fortinsky. “Together, we’re rewriting the rules and putting the power back in the hands of bettors.”
Co-founded by Fortinsky and fellow recent Harvard graduate Kelechi Ukah, Novig gained market access to the Colorado market in October via a 10-year partnership with Full House Resorts and its Bronco Billy’s Casino property in Cripple Creek.
Ahead of its forthcoming launch, Novig completed a successful beta test in which 200 users competed in a two-week trading tournament that saw 15,500 orders placed across 1,290 markets.
“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.
As part of its initial product rollout, Novig will offer moneylines, spreads, totals, futures, and in-play markets for NFL, NBA, and MLB.