Unlocks Crypto Gems: Former Chainlink, Two Sigma Execs Launch $25M Venture Capital Fund
The search for the next big thing in digital assets is getting a high-tech upgrade. A new player has entered the crypto VC space, armed with significant experience and a unique data tool aimed at finding promising early-stage blockchain projects. This is a story that should capture the attention of anyone interested in where smart money is flowing in the crypto market.
Venture Capital veterans target crypto gems
Metalayer Ventures, a new venture capital firm, has officially launched a $25 million fund. What makes this launch noteworthy is the team behind it: former executives from blockchain oracle giant Chainlink and quantitative trading powerhouse Two Sigma. Their goal is clear: invest in early-stage blockchain projects with a specific focus on key growth areas within the digital asset landscape.
The fund will primarily target investments in:
- Stablecoins: Assets pegged to stable values, crucial for facilitating transactions and bringing stability to volatile markets.
- Tokenization: Representing real-world or digital assets on the blockchain, unlocking liquidity and new ownership models.
- Cryptocurrency Infrastructure: Building the foundational layers necessary for the industry’s expansion and adoption.
Metalayer Ventures has already been active, backing seven companies prior to the public announcement. These early investments include AnchorZero (tax-advantaged crypto investing), Spark Capital (stablecoin infrastructure), Ethena, ClearToken, Crossover Markets, Station70, and Theo (onchain trading infrastructure).
Moirai: A Data-Driven Approach to Finding Blockchain Projects
One of Metalayer’s distinct advantages is a proprietary data platform named Moirai. Developed by co-founder David Winton (formerly of Two Sigma), Moirai is designed to systematically analyze various onchain and offchain data points to identify promising blockchain projects. This includes looking at developer activity, protocol engagement, and transaction patterns. Co-founder Mickey Graham (former Chainlink Labs head of growth) describes Moirai as their “internal sourcing engine,” helping them surface high-quality startups by evaluating opportunities across multiple dimensions.
Stablecoins and Tokenization in Focus
The fund’s emphasis on stablecoins and tokenization reflects a broader industry trend towards integrating digital assets with traditional finance and real-world use cases. These areas are seen as critical for scaling blockchain technology beyond speculative trading into mainstream applications. Investing in infrastructure supporting these areas is also key to enabling future growth.
Broader Crypto VC Landscape
Metalayer’s launch comes within a dynamic crypto VC environment. While the first quarter of the year saw an uptick in total funding and deal volume compared to the previous quarter, driven significantly by a large single deal (Binance’s $2 billion raise), overall venture capital activity remains below the peaks of the last bull market. Data from Galaxy Digital showed 446 crypto funding deals in Q1, a 7% increase quarter-over-quarter, but still lower than past highs.
Experts like Robert Lee from PitchBook note that many venture capital firms are still cautious, partly because funds from the last cycle haven’t yet returned significant capital to investors (low Distributed to Paid-In Capital – DPI). However, Mickey Graham suggests this period reflects a transition from early infrastructure building to deploying blockchain technology across the global economy. Kadan Stadelmann of Komodo Platform adds that an uptick in mergers and acquisitions and clearer regulations in regions like the US and EU are giving institutions more confidence to invest in crypto firms. The US continues to lead geographically in crypto VC deals.
Conclusion
Metalayer Ventures, backed by experienced hands from Chainlink and Two Sigma, is positioning itself as a data-driven investor in the early-stage crypto market. Their $25 million fund, powered by the Moirai platform, focuses on critical areas like stablecoins, tokenization, and infrastructure, aiming to uncover hidden crypto gems. While the broader crypto VC landscape shows signs of recovery but remains cautious, Metalayer’s targeted approach and unique analytical tools offer a fresh perspective on navigating this evolving market and identifying promising blockchain projects.
