This Hedge Fund Plans to Raise $500M for AI and Blockchain Investments

North Carolina-based hedge fund manager Morgan Creek Digital plans to raise nearly $500 million for a new fund focused on investing in artificial intelligence, blockchain, chips and data opportunities.

according to press releaseMorgan Creek’s new fund will invest in early-stage companies that combine the power of artificial intelligence, blockchain technology and associated chips to unlock value from data.

Morgan Creek plans to raise $500 million for new fund

Morgan Creek is looking for technologies that cross sectors, such as high-performance chips that can be used to mine bitcoin or train AI models in data centers.

The hedge fund manager is already in talks with partners, sovereign and institutional investors and corporate executives in several regions, including Europe, the US, the Middle East, Africa and Asia Pacific, and plans to expand its regional reach with the new fund.

“As Web3 becomes more global, MCD will spend more time in international markets seeking connections with top executives and partners,” said Mark Yusko, general partner of Morgan Creek Digital.

Morgan Creek believes that the EMEA and APAC regions, especially the Middle East, will be the technology leaders of the future due to their increasing investments in the AI ​​and blockchain sectors.

With over $440 million raised since its inception, the venture capital firm believes that Asia-Pacific could triple its investment in generative AI, while EMEA could see capital invested in the same sectors grow by 40%. This growth in the regions could add $30 billion in net new investment by next year.

Cryptocurrency Venture Capital Market Rebounds

Morgan Creek Digital’s latest announcement comes as the crypto venture capital market is recovering with increased fundraising activity compared to last year, especially for early-stage companies. The first two quarters of 2024 saw a significant number of deals raising billions of dollars, according to a report From Galaxy Research.

While crypto VC inflows peaked in Q1 2022, the following quarters saw volumes decline until Q1 2024, which raised $2.5 billion across 603 deals. Q2 2024 saw better numbers, albeit with a slightly lower deal count, raising $3.2 billion across 577 deals.

With a bull market expected this year, investors may feel the fear of missing out (FOMO) and greater competition that could lead to higher deal counts and raised amounts.