Former Chainlink, Two Sigma execs build ‘Moirai’ to uncover crypto gems

Metalayer Ventures, a crypto-focused venture capital firm founded by former executives from Chainlink and Two Sigma, has launched a $25 million fund targeting early-stage blockchain projects. The firm’s investment strategy centers on stablecoins, tokenization, and cryptocurrency infrastructure. Metalayer has already invested in seven companies, including AnchorZero (a platform assisting crypto founders with Roth IRAs), Spark Capital (focused on stablecoin infrastructure), Ethena, ClearToken, Crossover Markets, Station70, and Theo (an on-chain trading infrastructure project that recently secured $20 million in funding). The firm plans to invest in up to 30 companies, with early-stage investments ranging from $500,000 to $1 million.

Metalayer leverages a proprietary data platform, Moirai, to analyze developer activity, protocol engagement, and blockchain transaction patterns to identify promising projects. This internal sourcing engine allows for systematic identification of high-quality startups, evaluating opportunities across multiple key dimensions.

The broader crypto venture capital landscape shows a mixed picture. While Q1 2024 saw a surge in funding to $4.9 billion, this was largely driven by a single $2 billion Binance deal. Despite this, overall deal volume increased by 7% compared to the previous quarter, reaching 446 deals. However, activity remains significantly below previous bull market peaks.

Venture capitalists remain cautious, citing challenges such as the recent crypto price correction and low returns on previous investments (DPI). Some analysts believe the market is undergoing a necessary transition from infrastructure-building to mainstream adoption of blockchain technology across various sectors. This shift, combined with positive regulatory developments in the US and EU, is boosting institutional investor confidence. Mergers and acquisitions are also increasing, suggesting market maturation.

The US continues to dominate crypto VC activity, accounting for over a third of all deals in 2024. This trend is expected to persist. Metalayer’s entry into the market reflects this evolving landscape, indicating a continued focus on promising early-stage blockchain projects despite overall market uncertainty.