Investment Firm Two Sigma Ventures Raises $400M For 2 Crypto-Focused Funds

Investment firm Two Sigma Ventures has raised $400 million for two funds that will focus on investment in crypto firms and protocols. Now, the firm's assets under management (AUM) have risen to $1.8 billion.

According to a Wednesday statement, Two Sigma Ventures announced the closing of two venture funds "aiming to propel the next era of tech innovation forward." The funds, Two Sigma Ventures IV (TSV IV) and Two Sigma Ventures Opportunity Fund II (TSV Opps II), will focus on investing in early-stage crypto startups and in growth-stage companies, respectively.

"Approximately 85% of the new capital comes from external investors, primarily institutions such as college endowments, non-profit foundations, pension funds, and hospital systems, with the remainder of the capital coming from Two Sigma's partners and senior employees," the investment firm said.

Contributing to 15% of the funds, Two Sigman Ventures is the venture arm of Two Sigma, a New York-based financial sciences firm that has over $60 billion worth of assets under management, as per its website.

"In the last 10 years we've backed over 100 companies aligned with that thesis, and are proud of the successes our founders have experienced. This new infusion of capital is the beginning of our next chapter as a business and will allow us to fund the next generation of entrepreneurs with world-changing ideas," said Colin Beirne, partner at Two Sigma Ventures.

According to a recent report, North Island Ventures, a crypto-centered investment firm, announced a $125 million investment fund with an aim to invest in 30 to 40 early-stage and emerging crypto and Web3 service providers and protocols. Also, Alchemy, a platform for Web3 developers, raised $12 million to establish a venture capital fund as well.