US bank Erebor nears $1.5bn funding round at $8bn valuation
Late-stage discussions for the capital raise include prominent venture firms, marking a significant step for the lender established after the collapse of Silicon Valley Bank.
US bank Erebor is in late-stage discussions to secure a $1.5 billion funding round at an $8 billion valuation, according to reports from the Financial Times. The capital raise represents a sharp increase from the $4.35 billion valuation used earlier this year, signalling growing confidence in the lender’s business model.
The bank, founded by Palmer Luckey to address the financing gap left by the 2023 collapse of Silicon Valley Bank, obtained final regulatory approval in February. Since then, it has seen deposits climb to $4.6 billion by the end of July, with annualised recurring revenue exceeding $100 million, according to sources cited by Retail Banker International.
Likely participants in the new round include Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz, and SV Angel. Existing shareholders, including 8VC and Haun Ventures, are also expected to support the latest injection of capital.
Erebor was established to serve the US innovation economy, focusing on technology companies operating in virtual currencies, artificial intelligence, defence, and manufacturing. The founding team, which includes Owen Rapaport, Jacob Hirshman, Trevor Capozza, and Aaron Pelz, intends to serve both the businesses and the individuals employed by or investing in these sectors.
In a move to bolster its governance, the bank’s board has added former US official Michael Mosier and former American Express executive Anré Williams. The institution plans to continue its focus on high-growth technology sectors as it scales its operations in the wake of the previous year’s banking sector turmoil.
