· investment-strategies · 1 min read
Two Sigma Ventures Spins Out as Deviation Capital With $2B AUM
Two Sigma Ventures completed its spinout from quant firm Two Sigma to become independent Deviation Capital, carrying ~$2B in AUM and 79 portfolio companies.
Two Sigma Ventures completed its spinout from quant trading firm Two Sigma in May 2026, relaunching as an independent firm named Deviation Capital with roughly $2B in AUM and 79 active portfolio companies.
Key facts
- Predecessor: Two Sigma Ventures (incubated ~15 years ago inside Two Sigma)
- New firm: Deviation Capital (independent)
- AUM: ~$2B across acquired TSV funds
- Portfolio: 79 active companies incl. WHOOP, Remote, Xaira, Kalshi, Gameto, Etched
- Stages: Seed and Series A, technical founders in data/compute
- First core fund under new structure: Deviation V
Why this matters
Fund V marked a natural inflection point for the Two Sigma Ventures team to become independently owned and operated. Deviation retains access to Two Sigma talent via a seven-person Technical Expert Council, preserving the data-and-compute edge that defined TSV’s thesis.
Sources
- Deviation Capital launch (Morningstar / Business Wire): https://www.morningstar.com/news/business-wire/20260504832753/deviation-capital-launches-with-2b-aum-following-spinout-from-two-sigma
- Introducing Deviation Capital: https://deviation.com/updates/introducing-deviation
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