Deviation Capital has officially launched as a spin-out of Two Sigma Ventures, debuting with approximately $2 billion in assets under management. The new early-stage venture firm will continue its predecessor's mission of backing technical founders at the Seed and Series A stages. It begins with an active portfolio of 79 companies, aiming to support innovators who are leveraging data and computing to redefine industries.
A New Name for a Proven Strategy
While Deviation Capital is a new entity, it is built upon the established foundation of the Two Sigma Ventures business. The firm inherits a proven investment strategy, a seasoned team, and a substantial existing portfolio that includes notable companies like Whoop and Remote. This continuity provides a stable and experienced platform for its future investments and operations under the new brand.
The firm's investment approach is guided by a "metathesis" developed nearly 15 years ago. This core belief posits that generational companies are created by harnessing the growing volume of data through advancements in computing. As AI represents the latest evolution of this trend, the team feels uniquely prepared to identify and support the next wave of innovators.
Strengthening Leadership and Expanding Reach
To bolster its leadership, Deviation Capital has appointed Jonathan Golden as a founding partner alongside former TSV partners Colin Beirne, Dusan Perovic, and Sidney Costabile. Golden brings extensive experience as a former partner at NEA and as the first product manager at Airbnb. His expertise in B2B software and AI is expected to be a significant asset to the firm's investment strategy.
In a significant move to broaden its geographical footprint, the firm is launching a new office in San Francisco. This West Coast presence will complement its existing New York headquarters, placing it at the heart of another major tech ecosystem. The expansion begins with the hiring of Matthieu Schulz, formerly of Cognition, to help build out the new team.
Continued Collaboration with Two Sigma
The spin-out maintains a strong, collaborative relationship with its predecessor, Two Sigma. This connection is formalized through a Technical Expert Council, composed of seven senior leaders from Two Sigma. This council will provide Deviation Capital with strategic support in sourcing, diligence, and advising its portfolio companies.
This ongoing partnership ensures that Deviation Capital and its portfolio companies can access the deep technical expertise within Two Sigma's community. Two Sigma is not only a collaborator but also an investor in the new firm, underscoring its confidence in the team's vision. This structure provides the agility of a new firm with the resources of an established institution.
With its official launch, Deviation Capital emerges as a formidable player in the early-stage venture landscape, armed with a $2 billion AUM and a clear mission. By combining a proven team, a strategic expansion, and a continued partnership with Two Sigma, the firm is well-positioned to execute its first fund, Deviation V. It aims to be an exceptional partner for the exceptional founders it seeks to fund.