Erebor, a bank focused on startups in crypto, artificial intelligence, and defense, is in talks to raise $1.5 billion at a valuation of as much as $9.5 billion, according to CoinDesk, citing the Financial Times. The bank was co-founded by Anduril founder Palmer Luckey and Joe Lonsdale, with Peter Thiel’s venture firm Founders Fund leading the round. The report said the capital is intended largely to meet a statutory 12% leverage ratio, allowing Erebor to expand lending while maintaining adequate capital. That lending includes a $200 million credit facility for nuclear startup Valar Atomics. Erebor received final U.S. operating approval in February this year. Its deposit growth has also been rapid, climbing from $1.1 billion in March to $4.6 billion in July, with customers concentrated in the crypto, AI, and defense sectors. The bank’s positioning targets a gap left after Silicon Valley Bank collapsed in 2023.
Erebor, a bank serving startups in crypto, artificial intelligence, and defense, is in talks to raise $1.5 billion at a valuation of up to $9.5 billion, according to CoinDesk, citing the Financial Times.
Founded by Palmer Luckey and Joe Lonsdale
The report said Erebor was co-founded by Anduril founder Palmer Luckey and Joe Lonsdale. The funding round is being led by Founders Fund, the venture capital firm tied to Peter Thiel.
The money is set to serve a traditional banking purpose: helping the company meet a statutory 12% leverage ratio so it can keep enough capital in place while expanding its lending book. That includes a $200 million credit facility for nuclear startup Valar Atomics. Erebor received final operating approval in the United States in February this year.
Deposits rose from $1.1 billion to $4.6 billion in four months
Erebor’s pace of growth stands out. Total deposits increased from $1.1 billion in March to $4.6 billion in July, roughly a fourfold increase in four months. Its client base mainly comes from the crypto, AI, and defense sectors.
That focus lines up with the gap left after Silicon Valley Bank, or SVB, collapsed in 2023. At the time, many startups and crypto companies lost a bank that was willing to serve them. Erebor is now aiming to claim that opening and become the next primary bank for the technology sector.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
