Two Sigma Ventures raises $400 million, to invest in crypto

Two Sigma Ventures, the Venture Capital arm of New York-based quant hedge fund, Two Sigma has disclosed its raising of $400 million for two funds, with a plan to invest in crypto using part of the funds.

• The first fund, Two Sigma Ventures IV fund for early-stage investments and the second, Opportunity fund for growth-stage investments will deploy venture funds across sectors, including enterprise software, financial technology, and consumer technology, the VC claims.
• Though the investment firm does not have a dedicated fund for crypto, Dan Abelon, partner at Two Sigma, says the VC will deploy around 15% of the raised funds for investments in crypto and web3 projects flexibly.  
• Two Sigma Ventures and its parent firm, Two Sigma focus on supporting startups using data science and software to make crypto a natural investment fit. The firms also emphasize how crypto can improve the operations of financial services.
• The VC is targeting developer tooling and infrastructure projects as areas to cut cheques for with the new funds. The new fund received participation from external investors, institutional players, such as college endowments, not-for-profit organizations, and pension funds. Two Sigma partners and senior employees at the firm also invested in the round.