Two Sigma Ventures Raises $400 Million across Two Funds

On Wednesday, September 14, Two Sigma Ventures, a venture firm focused on early-stage companies announced that it has raised $400 million across two funds. This includes the Two Sigma Ventures IV (TSV IV) and Two Sigma Ventures Opportunity Fund II (TSV Opps II).

As per the press release, the TSV IV will invest in early-age startups whereas the TSV Opps II will invest in growth-stage companies. Two Sigma Ventures invests across multiple industries including fintech, consumer tech, SaaS, crypto, DeFi, and much more.

A majority of 85% of the capital has come from external investors which primarily includes college endowments, pension funds, non-profit foundations, etc. The rest of the 15% of capital has come from Two Sigma’s partners and senior employees. Two Sigma Ventures said that the new capital will help them to invest in breakthrough companies while changing the way society and technology interact. Speaking on the development, Colin Beirne, partner at Two Sigma Ventures said:

“We started Two Sigma Ventures a decade ago with the belief that, as the world becomes more information-rich, most new companies that change the world will do so using some combination of data science and advanced computing. 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.”

The Growth of Two Sigma Ventures

Two Sigma Ventures is the venture arm of New York-based financial services firm Two Sigma. Unlike the traditional VC model, Two Sigma Ventures supports startups with not only strategic counsel, but also hands-on expertise in software engineering, data science, quantitative modeling, machine learning, and more.

The company also invests in founders working on novel discoveries by leveraging data science and computing advances across high-impact verticals and markets. Villi Iltchev, the partner at Two Sigma Ventures, said:

“We’re fortunate to have the consistent backing of many preeminent institutions who have supported us over the years on our mission to build a world-class venture capital firm”.

The latest fundraise will further help Two Sigma Ventures expand its footprint in the market.