According to CryptoPotato, North Carolina-based hedge fund manager Morgan Creek Digital aims to raise approximately $500 million for a new fund dedicated to investing in artificial intelligence (AI), blockchain technologies, chips, and data opportunities. The new fund will focus on early-stage companies that integrate AI with blockchain technology and the necessary chips to extract value from data.

Morgan Creek is seeking technology that intersects various sectors, such as high-performance chips used for Bitcoin mining or training AI models in data centers. The hedge fund manager is already in discussions with partners, sovereign and institutional investors, and corporate officers across multiple regions, including Europe, the United States, the Middle East and Africa (EMEA), and Asia-Pacific (APAC). The firm also plans to expand its regional presence through this new fund.

Morgan Creek Digital General Partner Mark Yusko stated, “With the global reach of Web3, MCD will be spending more time in international markets looking to connect with the best CEOs and partners.” The firm believes that the EMEA and APAC regions, particularly the Middle East, will become future leaders in technology due to their increasing investments in AI and blockchain sectors. Since its inception, Morgan Creek has raised over $440 million and anticipates that APAC countries could triple their investment in generative AI, while EMEA nations could see a 40% increase in capital injected into the same sectors. This growth could result in an additional $30 billion in new net investment by next year.

Morgan Creek Digital’s announcement comes as the crypto venture capital market shows signs of recovery, with more active fundraising compared to last year, especially for early-stage companies. The first two quarters of 2024 have seen a significant number of deals raising billions of dollars, according to a report from Galaxy Research. Although crypto venture capital flows peaked in the first quarter of 2022, subsequent quarters experienced declining volumes until the first quarter of 2024, which recorded $2.5 billion raised across 603 deals. The second quarter of 2024 saw even better numbers, 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 experiencing a fear of missing out (FOMO) and increased competition, potentially leading to a surge in the number of deals and the amount raised.