Venture Capital Fund Allocates $500 Million for AI Blockchain

Morgan Creek Digital, a hedge fund manager based in North Carolina, aims to raise approximately $500 million for a new fund dedicated to investments in artificial intelligence (AI), blockchain technologies, high-performance chips, and data opportunities.

According to a press release, this new fund from Morgan Creek will focus on early-stage companies that integrate AI with blockchain technology and the necessary chips to harness data value.

Morgan Creek Plans to Raise $500M for Innovative Fund

The firm is targeting technologies that intersect multiple sectors, such as high-performance chips used for Bitcoin mining or AI model training in data centers.

Morgan Creek is already in discussions with partners, sovereign and institutional investors, and corporate executives across Europe, the United States, the Middle East and Africa (EMEA), and the Asia-Pacific (APAC) regions. The hedge fund manager also plans to expand its presence in these regions through the new fund.

MORGAN CREEK DIGITAL AIMS FOR $500M FUND TO DRIVE AI AND WEB3 INNOVATIONS

Targeting investors in Europe, the Middle East, Africa, and Asia-Pacific, the firm aims to capitalize on these regions’ increasing investments in AI and blockchain.

General Partner Mark Yusko highlighted… pic.twitter.com/htbscPwXpm

— IBC Group Official (@ibcgroupio) July 12, 2024

Mark Yusko, General Partner at Morgan Creek Digital, stated: “With the global reach of Web3, MCD will be dedicating more time to international markets to connect with top CEOs and partners.”

Morgan Creek anticipates that the EMEA and APAC regions, particularly the Middle East, will emerge as future leaders in technology due to their increasing investments in the AI and blockchain sectors.

Since its inception, Morgan Creek has raised over $440 million. The firm projects that APAC countries could triple their investments in generative AI, while EMEA nations might see a 40% increase in capital directed towards these sectors. This growth could result in an additional $30 billion in new net investment by next year.

The Resurgence of the Crypto VC Market

Morgan Creek Digital’s recent announcement coincides with a rebound in the crypto venture capital market, marked by more active fundraising compared to last year, particularly for early-stage companies. According to a report from Galaxy Research, the first two quarters of 2024 have seen numerous deals raising billions of dollars.

While crypto venture capital activity peaked in the first quarter of 2022, subsequent quarters experienced declining volumes until the first quarter of 2024, which saw $2.5 billion raised across 603 deals. The second quarter of 2024 saw even better results, with $3.2 billion raised across 577 deals, despite a slight decrease in the number of deals.

With a bull market anticipated this year, investors may be driven by a fear of missing out (FOMO) and intense competition, potentially leading to a surge in the number of deals and the amount of capital raised.