Two Sigma Ventures is the venture capital arm of New York-based quant hedge fund Two Sigma, which has about $60 billion in assets under management. The combination drives a focus on startups utilizing data science and software, making crypto a natural investment fit.

Approximately 85% of the capital for the new funds came from external investors, primarily institutional players such as college endowments, non-profit foundations and pension funds. The remainder came from Two Sigma partners and senior employees.

Two Sigma funds typically cut checks of about $8 million to $12 million for a Series A round.