Key Takeaways
- • Metalayer, a newly formed crypto venture fund founded by three former Two Sigma Ventures veterans, filed SEC paperwork on November 21, 2024, disclosing a $25 million target fund size with plans to reach full capitalization by year-end.
- • The fund achieved its first close on November 22, 2024, with $20 million in committed capital, sourced initially from senior Two Sigma Ventures executives, family offices, and crypto protocol executives, though Two Sigma will maintain no formal relationship with Metalayer.
- • Metalayer's three cofounders are Andy Kangpan (digital asset lead at Two Sigma Ventures until August 2024), Mickey Graham (former VP at Two Sigma Ventures, departed 2021 for Chainlink), and David Winton (former VP software engineer at Two Sigma Ventures, departed 2021 for Greenoaks).
- • The fund launch reflects renewed institutional capital interest in cryptocurrency venture investing as the blockchain sector experiences a cyclical upswing, with experienced VC talent from elite quant firms now establishing dedicated crypto-focused vehicles.
Summary
Metalayer, a cryptocurrency-focused venture capital fund, has emerged as the latest spinout from Two Sigma Ventures, the VC arm of the secretive New York-based quantitative hedge fund Two Sigma. According to SEC filings and sources familiar with the matter, the newly established firm filed paperwork on Thursday, November 21, disclosing a $25 million investment fund targeting allocation across blockchain and digital asset opportunities. The fund achieved its initial close on Friday, November 22, with $20 million in committed capital and plans to raise the remaining capital by the end of 2024.
The three cofounders represent seasoned venture professionals with deep cryptocurrency and software engineering expertise drawn from Two Sigma's operations. Andy Kangpan served as the digital asset lead within Two Sigma Ventures until his departure in August 2024, positioning him at the forefront of the firm's crypto initiatives. Mickey Graham, who spent time as vice president at Two Sigma Ventures before departing in 2021, subsequently joined Chainlink, a major blockchain infrastructure project. David Winton, who held the title of VP software engineer at Two Sigma Ventures when he left in 2021, later moved to Greenoaks, a prominent San Francisco venture capital firm, where he contributed to the research function.
Initial capitalization came from senior Two Sigma Ventures executives, supplemented by funding from family offices and executives from crypto protocols, reflecting a diverse base of institutional and industry participants. Notably, Two Sigma and Metalayer have declined comment on the venture, and the two organizations will not maintain a formal operational relationship despite the personnel overlap and initial funding sources. Two Sigma's hedge fund business manages approximately $60 billion in assets and has cultivated a reputation as an elite quantitative firm emphasizing data-driven and software-engineering-focused approaches to investment. The conglomerate has expanded its presence in cryptocurrency through both trading and market-making operations as well as venture allocations in recent years, positioning its former employees as well-positioned to launch a specialized digital asset fund during a period of renewed blockchain industry momentum.
The three cofounders represent seasoned venture professionals with deep cryptocurrency and software engineering expertise drawn from Two Sigma's operations. Andy Kangpan served as the digital asset lead within Two Sigma Ventures until his departure in August 2024, positioning him at the forefront of the firm's crypto initiatives. Mickey Graham, who spent time as vice president at Two Sigma Ventures before departing in 2021, subsequently joined Chainlink, a major blockchain infrastructure project. David Winton, who held the title of VP software engineer at Two Sigma Ventures when he left in 2021, later moved to Greenoaks, a prominent San Francisco venture capital firm, where he contributed to the research function.
Initial capitalization came from senior Two Sigma Ventures executives, supplemented by funding from family offices and executives from crypto protocols, reflecting a diverse base of institutional and industry participants. Notably, Two Sigma and Metalayer have declined comment on the venture, and the two organizations will not maintain a formal operational relationship despite the personnel overlap and initial funding sources. Two Sigma's hedge fund business manages approximately $60 billion in assets and has cultivated a reputation as an elite quantitative firm emphasizing data-driven and software-engineering-focused approaches to investment. The conglomerate has expanded its presence in cryptocurrency through both trading and market-making operations as well as venture allocations in recent years, positioning its former employees as well-positioned to launch a specialized digital asset fund during a period of renewed blockchain industry momentum.
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