Key Takeaways
- • Deviation Capital launches as independent venture firm with $2 billion in assets under management, following a completed spinout of Two Sigma Ventures, the quantitative trading firm's 14-year-old VC platform.
- • Leadership team includes Colin Beirne (founder), Dusan Perovic (data science and life sciences investments), Sidney Costabile (capital markets), and Jonathan Golden (former NEA partner leading San Francisco operations), positioning the firm with deep technical and product expertise.
- • Portfolio spans consumer, enterprise, and life sciences sectors, including notable companies such as WHOOP, Remote, Xaira, Kalshi, Gameto, and Etched—all focused on the intersection of data, software, and advanced computing.
- • Two Sigma Ventures' Fund V marked the natural inflection point for independence, with TSV's leadership determining that the transition to standalone ownership and operation was optimal at this stage of firm maturity.
- • Deviation's founding thesis centers on backing technical founders applying data science and advanced computing to disrupt industries, a thesis rooted in Two Sigma Ventures' original 15-year-old mandate predating current AI market terminology.
Summary
Deviation Capital officially launched as an independently operated venture capital firm on May 5, 2026, following the completed spinout of Two Sigma Ventures from Two Sigma, the prominent quantitative investment and trading firm. The new venture firm assumed management of existing Two Sigma Ventures funds representing approximately $2 billion in assets under management, establishing it as a scaled, operationally mature early-stage investment platform from inception.
The spinout represents a natural maturation event for Two Sigma Ventures, which was incubated within Two Sigma 14 years prior and grew into a fully operational venture capital business. TSV's leadership identified Fund V as the optimal inflection point for transition to independent ownership and operations, enabling the firm to pursue autonomous growth and investment strategy.
Deviation's investment focus targets technical founders leveraging accelerating forces in data and computing across consumer, enterprise, and life sciences verticals. The firm's existing portfolio includes established names such as WHOOP (wearable health data), Remote (distributed workforce infrastructure), Xaira (AI-driven biotech), Kalshi (prediction markets), Gameto (reproductive technology), and Etched (AI hardware), reflecting an investment thesis centered on data-software convergence and advanced computing applications.
The firm is led by Colin Beirne, who founded Two Sigma Ventures' predecessor over a decade ago and now leads Deviation as founding partner; Dusan Perovic, who directs investments at the intersection of data science and life sciences; Sidney Costabile, overseeing capital markets; and Jonathan Golden, a former NEA partner with extensive product leadership experience, who is joining to establish and lead Deviation's San Francisco office. According to founding partner Beirne, Deviation's thesis—backing companies applying data science and computing advances to disrupt industries—originated in Two Sigma Ventures' founding charter approximately 15 years ago, predating the current wave of AI market terminology and industry consolidation.
The spinout represents a natural maturation event for Two Sigma Ventures, which was incubated within Two Sigma 14 years prior and grew into a fully operational venture capital business. TSV's leadership identified Fund V as the optimal inflection point for transition to independent ownership and operations, enabling the firm to pursue autonomous growth and investment strategy.
Deviation's investment focus targets technical founders leveraging accelerating forces in data and computing across consumer, enterprise, and life sciences verticals. The firm's existing portfolio includes established names such as WHOOP (wearable health data), Remote (distributed workforce infrastructure), Xaira (AI-driven biotech), Kalshi (prediction markets), Gameto (reproductive technology), and Etched (AI hardware), reflecting an investment thesis centered on data-software convergence and advanced computing applications.
The firm is led by Colin Beirne, who founded Two Sigma Ventures' predecessor over a decade ago and now leads Deviation as founding partner; Dusan Perovic, who directs investments at the intersection of data science and life sciences; Sidney Costabile, overseeing capital markets; and Jonathan Golden, a former NEA partner with extensive product leadership experience, who is joining to establish and lead Deviation's San Francisco office. According to founding partner Beirne, Deviation's thesis—backing companies applying data science and computing advances to disrupt industries—originated in Two Sigma Ventures' founding charter approximately 15 years ago, predating the current wave of AI market terminology and industry consolidation.
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