Metalayer: New $25 Million Crypto Venture Fund Led by Two Sigma Veterans
Metalayer, a new cryptocurrency investment firm founded by former Two Sigma Ventures executives, is launching a $25 million venture fund. The firm has already raised $20 million in its initial closing and focuses on the convergence of cryptocurrency and traditional finance. Despite a general decline in crypto venture capital activity, Metalayer aims to capitalize on market opportunities as it works toward raising the total fund amount by year-end.
Metalayer, a new cryptocurrency investment firm, is set to launch a $25 million venture fund as the blockchain sector experiences renewed momentum. On Thursday, the firm filed registration documents with the Securities and Exchange Commission, revealing that it has already secured $20 million in its initial closing, primarily from several senior executives at Two Sigma Ventures. Though the two entities will not have a formal relationship, the founders of Metalayer—all seasoned professionals from Two Sigma Ventures—aim to raise the full amount by the end of the year.
The founders include Andy Kangpan, the former digital asset lead at Two Sigma Ventures, along with Mickey Graham and David Winton, who also held significant positions at the company. Metalayer has already invested in three projects, signaling its focus on integrating cryptocurrency with traditional financial services. While Metalayer seeks to capitalize on a resurgent market, the overall venture capital landscape in the crypto space has contracted, with investments falling by 20% in the latest quarter.
Despite current challenges at Two Sigma, including a recent workforce reduction of 200 employees and managerial shifts among its founders, Metalayer appears well-positioned to attract additional investments from family offices and executives involved with cryptocurrency protocols. The firm’s endeavors come alongside other notable fundraising efforts within the sector, indicating ongoing interest in crypto despite short-term market fluctuations.
The cryptocurrency market is currently witnessing a revival after a period of decline, prompting new investment firms to emerge. Metalayer is one such firm, comprised of experienced professionals from the prestigious Two Sigma Ventures, which is known for its quantitative investment strategies. The venture firm is strategically focusing on the intersection of cryptocurrency and mainstream finance, aiming to leverage its founders’ substantial expertise. The blockchain industry, although still facing overarching venture investment declines, continues to attract attention due to its transformative potential in financial services.
In summary, Metalayer’s launch marks an important development in the investment landscape of cryptocurrency, driven by its founding team composed of veterans from Two Sigma Ventures. The firm seeks to raise $25 million while navigating a volatile market characterized by recent downsizing at Two Sigma itself. Despite the overall dip in crypto venture activity, Metalayer has shown promise by securing significant initial funding and actively investing in key projects in the blockchain space.
Original Source: fortune.com
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