US bank Erebor nears $1.5bn funding round at $8bn valuation – report

US bank Erebor nears $1.5bn funding round at $8bn valuation – report

Vidhya Edwards Munnangi

Tue, August 11, 2026 at 2:46 PM GMT+3 2 min read

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Erebor, a newly launched US bank supported by Silicon Valley investors, is nearing a funding round of roughly $1.5bn, expanding months after securing regulatory clearance to operate.

The company, created to address the gap left by the failure of Silicon Valley Bank, is in late-stage discussions to secure the capital at an $8bn valuation before the fresh money is included, the Financial Times reported.

Sources said likely participants in the round include Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and Ron Conway's SV Angel.

Erebor was founded by Palmer Luckey, the entrepreneur behind defence contractor Anduril, and has drawn backing from a number of prominent investors.

Current shareholders, among them Joe Lonsdale's 8VC and Haun Ventures, are also expected to support the latest round.

The new valuation would represent a sharp increase from earlier this year, when Erebor raised money at a $4.35bn valuation.

The bank's founders moved to establish the business after Silicon Valley Bank collapsed in 2023. That lender had served as a key source of financing for US technology start-ups and the venture capital firms backing them.

Erebor obtained final regulatory approval in February. Since then, its deposits have climbed to $4.6bn by the end of July, the news publication cited a source as saying.

The same person said the bank has already gone beyond $100m in annualised recurring revenue, and that its board added former US official Michael Mosier and former American Express executive Anré Williams.

Alongside Luckey, Erebor's founding team includes Owen Rapaport, Jacob Hirshman, Trevor Capozza and Aaron Pelz.

In a filing last year, Erebor said it planned to focus on businesses in the US "innovation economy", especially technology companies working in virtual currencies, AI, defence and manufacturing. It also said it would seek to serve people employed by or investing in those businesses.

"US bank Erebor nears $1.5bn funding round at $8bn valuation – report " was originally created and published by Retail Banker International, a GlobalData owned brand.