(Axios) cited multiple sources reporting that the new digital bank Erebor, supported by several well-known tech billionaires closely connected to the Trump administration, has quietly raised $350 million, with a post-money valuation of $4.35 billion. This round of financing was led by Lux Capital, with other new investors participating.
Erebor was co-founded by Palmer Luckey, co-founder of the military contractor Anduril, and Joe Lonsdale, head of the venture capital firm 8VC and co-founder of the data analytics company Palantir, aiming to fill the market gap left by the collapse of Silicon Valley Bank. Like Anduril and Palantir, the name Erebor is taken from 'The Hobbit'.
Erebor's early supporters include Peter Thiel's venture capital firm Founders Fund and Haun Ventures, an investment company focused on the cryptocurrency industry.
The Office of the Comptroller of the Currency (OCC) conditionally approved Erebor's application for a national bank charter in October of this year, just about four months after the application was submitted. The bank also obtained approval from the Federal Deposit Insurance Corporation (FDIC) last week, which is a necessary prerequisite for the bank to commence deposit operations.
According to the bank license application documents submitted to the regulatory authorities by Erebor, the proposed business model of the bank will focus on providing deposit and lending products to enterprises and individuals in the technology, payment systems, investment, and defense industries, including participants in the virtual currency market. Reports indicate that the outside world expects Erebor to officially launch next year.
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