# Deviation Capital

Deviation Capital is a Venture Capital based in New York, United States.

## Overview

- **Organization type:** Venture Capital
- **Headquarters:** New York, United States
- **Region:** North America
- **Address:** New York, NY, United States
- **Founded:** 2012
- **Assets under management:** Undisclosed
- **Website:** twosigmaventures.com

## Regulatory record

- **CRD number:** 295416
- **SEC file number:** 801-113886
- **Registration status:** Registered
- **Reports private funds:** Yes
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/295416

## About

Two Sigma Ventures is an SEC-registered investment adviser in New York, NY, registered since 2018. The firm manages approximately $2.2 billion in regulatory assets. It has 36 employees and 14 investment advisers.

## Sectors

- Enterprise Software
- AI/ML
- FinTech
- Digital Health
- Industrial Tech
- Cybersecurity
- SpaceTech
- ClimateTech

## Offices

- San Francisco, CA
- Menlo Park, CA
- Palo Alto, CA

## People

- Lindsey Gray — Partner
- Colin Beirne — Partner
- Dan Abelon — Partner
- Villi Iltchev — Partner
- Frances Schwiep — Partner

## Questions

### How does Two Sigma Ventures use quantitative methods in venture investing?

The firm applies machine-learning models to sourcing and evaluating early-stage companies, leveraging datasets from Two Sigma's broader quantitative infrastructure. This approach surfaces non-obvious founder and market signals that supplement traditional due diligence. The team includes in-house engineers and data scientists who build proprietary screening tools, creating a process that blends algorithmic analysis with human partner judgment.

### Is Two Sigma Ventures a separate entity from the hedge fund?

Two Sigma Ventures operates as an independent venture capital affiliate of Two Sigma, the $60 billion quantitative hedge fund. It has its own general partners, investment committee, and decision-making process. However, it benefits from the parent firm's technology infrastructure, data resources, and intellectual capital, creating a symbiotic but operationally distinct relationship.

### Who runs investment decisions at Two Sigma Ventures?

Investment decisions are led by the partnership group, which includes Villi Iltchev, Colin Beirne, Frances Schwiep, and Dan Abelon. Lindsey Gray also serves as a partner. The team operates from New York and San Francisco, with a flat partnership structure that emphasizes collaborative decision-making rather than a single managing partner model.

### What investment stages does Two Sigma Ventures target?

The firm invests from seed through Series C, with a strong concentration on Series A opportunities. It also participates in select growth rounds for portfolio companies. The fund can lead deals or participate as a co-investor, and maintains reserves for follow-on investments in later rounds.

### Which sectors does Two Sigma Ventures explicitly avoid?

The firm has a stated focus on technology-driven businesses and generally avoids sectors where its quantitative edge does not apply, such as traditional consumer packaged goods, brick-and-mortar retail, and real estate development. It also tends to steer clear of capital-intensive industries like heavy manufacturing and pure-play energy extraction, unless a clear AI or software overlay exists.

### How is Two Sigma Ventures related to the founders of Two Sigma?

The venture arm was established by Two Sigma's founders, John Overdeck and David Siegel, in 2012 as an extension of the firm's quantitative research culture into private markets. Overdeck and Siegel are not involved in day-to-day investment decisions at the venture arm. In 2024, after a protracted leadership dispute, both stepped back from day-to-day management, with Carter Lyons and Scott Hoffman appointed co-CEOs of the parent entity.

### Does Two Sigma Ventures have exposure to AI and machine learning startups?

Yes, AI and machine learning represent a core investment thesis. The firm's portfolio includes Recursion Pharmaceuticals, which uses AI for drug discovery, and Zymergen, which applied machine learning to materials science. The parent firm's internal ML capabilities give the venture team a distinctive lens for evaluating and supporting AI-native startups across multiple verticals.

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- [Climate Club Holdings](https://altss.com/profile/climate-club-holdings-pbc)
- [Eight Roads](https://altss.com/profile/eight-roads)

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Last updated: 2026-07-09T00:40:42.237Z

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