---
title: "Two Sigma Ventures Spins Out as Deviation Capital With $2B AUM"
description: "Two Sigma Ventures completed its spinout from quant firm Two Sigma to become independent Deviation Capital, carrying ~$2B in AUM and 79 portfolio companies."
date: 2026-05-04T00:00:00.000Z
tags: ["two-sigma-ventures", "fund-close", "venture-capital", "spinout", "startup-funding"]
source: https://venturecapitaltracker.com/2026-two-sigma-ventures-deviation-capital-spinout
---

# 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

1. 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
2. Introducing Deviation Capital: https://deviation.com/updates/introducing-deviation