Deviation Capital Launches with $2B AUM Following Spinout from Two Sigma

Newly independent firm to back technical founders harnessing the accelerating forces of data and computing.

SAN FRANCISCO & NEW YORK--(BUSINESS WIRE)--Deviation Capital, an early-stage venture capital firm, today announced its launch as a newly independent firm following a completed spinout of the Two Sigma Ventures business from quantitative investment and trading firm Two Sigma. As part of the spinout, Deviation has acquired management of certain existing TSV funds with approximately $2B in assets under management (AUM) as it seeks to grow its portfolio and invest in technical founders harnessing the accelerating forces of data and computing.

The TSV platform was incubated 14 years ago within Two Sigma and grew into a scaled, operationally mature firm. TSV’s leadership viewed their next fund, Fund V, as a natural inflection point to transition to an independently owned and operated business.

Deviation’s portfolio spans consumer, enterprise, and life sciences, including companies such as WHOOP, Remote, Xaira, Kalshi, Gameto, Etched, and others building at the intersection of data, software, and advanced computing. Deviation is led by partners Colin Beirne, who founded the firm’s predecessor more than a decade ago; Dusan Perovic, who leads investments at the intersection of data science and life sciences; Sidney Costabile, who oversees Capital Markets; and Jonathan Golden, a former NEA partner and longtime product leader who is joining the firm to lead and build out Deviation’s San Francisco office.

“What the market now calls ‘AI’ actually served as the founding thesis of Two Sigma Ventures for almost 15 years, when it was born out of a desire to back companies applying data science and advances in computing to upend industries or invent entirely new ones—just as Two Sigma did in asset management,” said Colin Beirne. “With Deviation, we’re carrying that same vision forward knowing that truly exceptional companies in this space are rare and hard to spot. Deviation is precision-built to find them.”

“Deviation has a very special formula: a resilient, long-standing metathesis spanning data and computing and an unmatched, deep technical expertise across infrastructure, applied AI, and TechBio,” said Jonathan Golden. ”I'm excited to join the team at a pivotal point in its evolution, and look forward to spotting and supporting founders who excel at converting technical ambition into the canonical companies that define our time.”

Deviation’s strategy is complemented and differentiated by its formal access to a network of Two Sigma senior technical experts across data science, artificial intelligence, engineering, and applied research, who can help across sourcing, diligence, and hands-on portfolio support.

Two Sigma’s Management Committee, John Overdeck and Seth Platt, said: "We are proud of the distinctive business the team has built over nearly 15 years, rooted in a deep conviction in the power of data, compute, and AI. Two Sigma remains a strong believer in Deviation's team, and we wish them every success in this next chapter."

About Deviation Capital

Deviation is an early-stage venture capital firm backing enduring exceptions built by founders harnessing the accelerating forces of data and computing. With offices in New York and San Francisco and $2B in assets, the firm invests at Seed and Series A with a focus on technical teams unlocking novel experiences, insights, and discoveries. Deviation’s portfolio spans consumer, enterprise, and life sciences, including companies such as WHOOP, Remote, Xaira, Kalshi, Gameto, and Etched. For more information or to reach the team, visit deviation.com.