Investing in Novig

Prediction markets have gone mainstream. But we should be honest about why. 

 

Sports betting accounts for the vast majority of prediction market volume, upwards of 90% on some major platforms. The success of sports as the primary prediction market category is because the sports betting industry is deeply flawed. And while there’s clear opportunities outside of sports betting, the first killer submarket of prediction markets is changing the rigged nature of online sportsbooks and casinos that exploit users. 

 

Ask any sports bettor and they explicitly know the game is stacked against them because, well, the house always wins.

 

The middlemen who collectively control the sports betting industry – “the house” – always win because they set the odds such that they always have a statistical advantage. Traditional platforms (e.g. DraftKings) actively ban users for winning too frequently. And users who aren’t banned are subject to the sportsbook changing odds at will and taking extractive “vigs” (fees on sports betting platforms).

 

All of this effectively amounts to a bad market structure with a heavy tax on participation.

 

Prediction markets create a better market structure for sports betting, by offering:

1. A peer-to-peer marketplace with global liquidity 
2. Better odds
3. A market without exploitative vigs (e.g. fees) 

 

Today, we’re excited to announce Pantera is leading the Series B investment in Novig, a sports prediction market that offers the best experience for consumers. 

 

Novig is delivering a new peer-to-peer exchange with better consumer protections: people wager on sports and have higher probabilities of winning because they’re not betting against the house. 

 

This exchange market structure results in better odds, where Novig users actually have 5% better odds compared to traditional platforms. Better odds translate to more opportunities for traders, which shows in the numbers – 23% of Novig users are profitable compared to 2% on traditional platforms. And, since Novig’s market is peer-to-peer, Novig users can even set their own odds for certain markets. 

 

The sports betting market structure is reshaping in real time because of new prediction markets like Novig, which expand the total addressable user base for sports bettors by tapping into global liquidity and providing better consumer protections. 

 

We’re thrilled to back Novig’s founders Jacob Fortinsky and Kelechi Ukah who founded the company with a core thesis: prediction markets offer a better experience for sports markets. The entire Novig team is a collection of sports and markets obsessed builders and bettors who are focused on creating the best sports prediction market for consumers. 

 

Even the origin of the company’s name points back to the mission: removing the “vigorish” ’– the platforms cut to ensure guaranteed profits – and offering users a ‘no vig’ experience. And so, unlike traditional sports books that ban profitable bettors and profit on ensuring consumers lose, Novig aligns its growth with that of its users, scaling with the success of their customers. 

 

The “house” always wins because it owns the rules. Novig’s betting that they can change the rules, replacing the house with a global peer to peer market. We’re making the same bet. 

 

For sports prediction market fans, download the Novig app today or listen to the Inside Prediction Markets Podcast by Novig. And if you’re obsessed with markets, sports, and want to challenge the house, Novig is hiring. 

 

Information presented is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. All investments involve risk and unless otherwise stated, are not guaranteed. There can be no assurance that this investment will provide a return for the investing fund. Be sure to consult with a tax professional before implementing any investment strategy.   Investment Advisory Services offered through Pantera, a Registered Investment Advisor with the U.S. Securities & Exchange Commission. Registration does not imply a certain level of skill or training. Past performance is not indicative of future results.