Morgan Creek Digital to Raise up to $500M for New Web3 Venture Capital Fund

Morgan Creek Digital plans to raise up to $500 million for a new fund targeting early stage opportunities in artificial intelligence (AI), blockchain technologies, chips and data, the company said in a press release on Friday.

The firm is talking to sovereign and institutional investors, corporate officers, and industry subject matter experts in Europe, the Middle East and Africa (EMEA) and in Asia-Pacific (APC) as it looks to expand its regional footprint, the company said. It is also talking to U.S. based investors and partners.

The venture capital firm says the EMEA and APAC regions are going to be leaders in the future of technology by notably increasing investments in AI and blockchain.

“With the global reach of Web3, MCD will be spending more time in international markets looking to connect with the best CEOs and partners,” Morgan Creek Digital General Partner Mark Yusko said in the release.

The new fund will invest in the “ABCDs” of Web3, in companies that look to combine the power of AI, blockchain technology, and the associated chips to unlock value from data. The firm prefers to invest in technology that overlaps sectors, such as high performance chips that can be used for AI training in data centers or for bitcoin mining.

The company notes that APAC countries are expected to almost triple investment in generative AI to $3.4 billion in 2024 and EMEA digital budgets for AI are predicted to grow by 40%, which could potentially add $30 billion in new net investment by 2025.

“In particular, the Middle East is going through a renaissance of new cutting-edge technology,” Yusko added.

Morgan Creek Digital has raised over $440 million since its inception in 2018 and has about 80 equity positions.