Key Takeaways
- • Metalayer, a new crypto venture fund founded by three Two Sigma Ventures veterans, has filed SEC paperwork for a $25 million fund with first close of $20 million achieved as of Friday, November 22, 2024.
- • The three cofounders—Andy Kangpan (digital asset lead until August 2024), Mickey Graham (VP until 2021), and David Winton (VP software engineer, departed 2021)—are raising from Two Sigma senior executives, family offices, and crypto protocol executives, with no formal relationship between Metalayer and Two Sigma.
- • Two Sigma, which manages approximately $60 billion in assets as a quantitative hedge fund, has become increasingly active in crypto through both trading and venture investing, establishing a data-driven investment culture that appears to be informing Metalayer's approach.
- • The fund launch reflects continued institutional momentum in crypto venture capital as the blockchain sector experiences a market recovery, with timing aligned to year-end capital raising.
Summary
Metalayer, a newly formed cryptocurrency venture fund founded by veterans of Two Sigma Ventures, has filed paperwork with the Securities and Exchange Commission outlining plans for a $25 million investment vehicle. According to exclusive reporting, the firm achieved its first close on November 22, 2024, with $20 million in committed capital, with plans to reach full capitalization by year-end 2024.
The three cofounders bring substantial pedigree from Two Sigma's venture arm. Andy Kangpan served as digital asset lead at Two Sigma Ventures until August 2024, positioning him as the most recent departure. Mickey Graham held the title of vice president at Two Sigma Ventures before departing in 2021 to join Chainlink, a major blockchain infrastructure project. David Winton also left as vice president and software engineer in 2021, subsequently joining Greenoaks, a prominent San Francisco-based venture firm, where he contributed to its research operations. This staggered departure pattern suggests Metalayer's formation reflects a deliberate regrouping of talent rather than a single exodus event.
Initial capitalization came from senior Two Sigma Ventures executives, though sources emphasized that Metalayer and Two Sigma will maintain no formal relationship. The fund is additionally raising from family offices and executives within crypto protocol organizations, broadening its LP base beyond its Two Sigma network. Both Metalayer and Two Sigma Ventures declined to comment on the formation or strategic rationale.
The venture launch occurs within the context of Two Sigma's established presence in cryptocurrency markets. The $60 billion hedge fund has developed active roles in crypto both through direct market-making and trading operations as well as venture capital deployment via its venture arm. Two Sigma's reputation as an elite quantitative investment firm—characterized by rigorous data science and software engineering methodologies—appears to inform Metalayer's market positioning as the blockchain industry experiences renewed institutional interest and capital inflows in late 2024.
The three cofounders bring substantial pedigree from Two Sigma's venture arm. Andy Kangpan served as digital asset lead at Two Sigma Ventures until August 2024, positioning him as the most recent departure. Mickey Graham held the title of vice president at Two Sigma Ventures before departing in 2021 to join Chainlink, a major blockchain infrastructure project. David Winton also left as vice president and software engineer in 2021, subsequently joining Greenoaks, a prominent San Francisco-based venture firm, where he contributed to its research operations. This staggered departure pattern suggests Metalayer's formation reflects a deliberate regrouping of talent rather than a single exodus event.
Initial capitalization came from senior Two Sigma Ventures executives, though sources emphasized that Metalayer and Two Sigma will maintain no formal relationship. The fund is additionally raising from family offices and executives within crypto protocol organizations, broadening its LP base beyond its Two Sigma network. Both Metalayer and Two Sigma Ventures declined to comment on the formation or strategic rationale.
The venture launch occurs within the context of Two Sigma's established presence in cryptocurrency markets. The $60 billion hedge fund has developed active roles in crypto both through direct market-making and trading operations as well as venture capital deployment via its venture arm. Two Sigma's reputation as an elite quantitative investment firm—characterized by rigorous data science and software engineering methodologies—appears to inform Metalayer's market positioning as the blockchain industry experiences renewed institutional interest and capital inflows in late 2024.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.