Morgan Creek Digital to Launch $500 Million Fund for AI, Blockchain, and Data Investments
North Carolina-based hedge fund manager Morgan Creek Digital has announced plans to raise approximately $500 million for a new fund focused on investing in artificial intelligence (AI), blockchain technologies, chips, and data opportunities. The fund will target early-stage companies that leverage AI and blockchain technology, along with high-performance chips, to extract value from data.
Investment Focus
Morgan Creek is seeking out technologies that straddle different sectors, such as chips that can be utilized for Bitcoin mining or training AI models in data centers. The hedge fund manager is currently engaging with partners, sovereign and institutional investors, as well as corporate executives in regions including Europe, the United States, the Middle East and Africa (EMEA), and Asia-Pacific (APAC). The goal is to broaden its presence in these regions through the new fund.
Statement from General Partner
Mark Yusko, General Partner at Morgan Creek Digital, expressed enthusiasm for the new fund, stating: “With a focus on cutting-edge technologies like AI and blockchain, we are confident that this fund will not only drive innovation but also deliver strong returns for our investors.”
The Growing Influence of Web3
As Morgan Creek Digital expands its reach globally, the firm is focusing more on international markets to establish connections with top CEOs and partners. The company believes that the EMEA and APAC regions, with a special emphasis on the Middle East, will emerge as leaders in technology innovation, particularly in the AI and blockchain sectors.
Investment Opportunities in Emerging Markets
With over $440 million in funding raised to date, Morgan Creek Digital sees tremendous potential for growth in APAC and EMEA countries. The firm predicts that APAC nations could triple their investment in generative AI, while EMEA countries could experience a 40% increase in capital injection in the same sectors. This growth could result in an additional $30 billion in net investment by the following year.
The Crypto VC Market Resurgence
Morgan Creek Digital’s recent announcement coincides with the resurgence of the crypto venture capital market, which has seen a significant increase in fundraising activities compared to the previous year. The first two quarters of 2024 have witnessed a surge in deals, raising billions of dollars for early-stage companies. According to a report from Galaxy Research, the crypto venture capital market is experiencing a revival and attracting more interest from investors.
The Rise and Fall of Venture Capital Flows
In 2022, venture capital flows reached their peak, but the following quarters saw a decline in volumes. However, in the first quarter of 2024, $2.5 billion was raised across 603 deals. The second quarter of 2024 saw an even better performance, with $3.2 billion raised across 577 deals.
Opportunities in the Bull Market
With the bull market expected to take place this year, investors may be feeling the fear of missing out (FOMO) and facing increased competition. This could lead to a surge in the number of deals and the amount raised, presenting exciting opportunities for investors.
