Sports-only prediction market company Novig is benefiting greatly from a nude advertisement starring actress Sydney Sweeney.
The advertisement, designed to appeal to young men, was released on Sept. 9. Exactly three weeks later, Novig completed a funding round that valued the company at $2 billion — four times its valuation just months earlier.
Sydney Sweeney helps Novig grow
Prediction markets allow customers to buy and sell outcomes related to future events, and to win money if they correctly forecast what will occur. Novig only offers sports contracts to its user base, which is spread across 47 states.
The Wall Street Journal was the first to report that Novig had concluded the round of funding for an undisclosed amount on Sept. 30, citing people familiar with the situation. It had been reported that Novig was valued at $500 million during a $75 million Series B round of funding led by Pantera Capital that closed in February.
Novig’s suggestive commercial with Sydney Sweeney shows her with a variety of sporting gear and equipment, some of which is used in place of clothing. Sweeney tells the audience that Novig offers sports trading while highlighting different markets that are available, such as football, basketball, baseball, and many others.
“Think you know sports? Prove it,” Sweeney says in the advertisement. “No betting on wars, or deaths, and no politics. Just you, your takes, and sports.”
The company received strong backlash for the controversial ad, which only just hides enough sensitive areas to be suitable for public dissemination. She lost over 200,000 of her 26 million-plus Instagram followers and was criticized by a variety of public figures, including former athletes who did not approve of how Sweeney highlighted their sports.
Novig and Sweeney both stood by the ad, denying any irresponsibility.
“Sydney’s an actress,” Fortinsky added. “We’re a prediction market that’s focused on sports, and that was the story she was communicating.”
Early growth
Novig had already made waves in prediction markets before it enlisted the help of Sydney Sweeney, known for her roles in television shows such as Euphoria and The White Lotus. It filed lawsuits against gaming officials in four states within its first week of joining the prediction industry, beginning on Aug. 4.
The platform began as a peer-to-peer sports exchange in 2021. It transitioned to a sweepstakes casino-style model before diving into prediction contracts this summer.
Novig’s soaring valuation is reflective of both the trajectory of the prediction market industry — easily worth tens of billions of dollars — and Sweeney’s impact. She turned down traditional cash compensation and received an undisclosed equity stake in the company for her advertisement. And while the exact figure is unknown, a 1% equity stake would represent $20 million in value based on Novig’s $2 billion valuation.
There’s also the possibility, if not outright likelihood, that Novig’s valuation grows higher. Kalshi is nearing a new $1 billion round of funding valuing the company at $40 billion, according to an exclusive Reuters report, the highest value of any company. This comes just about five months after it finished a separate $1 billion round of funding at a $22 billion valuation in May.
Polymarket, Kalshi’s top competitor, was valued at $22 billion in a recently completed funding round.
The Trade Handle Prediction Markets Take
Novig made a quick impact in prediction markets through its sports-only offerings and affiliation with Sydney Sweeney. The new valuation and 4x growth highlight the company’s trajectory as it floods social media platforms with ads and snaps up lucrative partnerships, including the MLB’s first prediction market partnership with the New York Mets. Competition within prediction markets is increasing every day, but Novig appears to be around for the long haul.