Erebor Bank Seeks $1.5 Billion Funding at $9.5 Billion Valuation
Tech-focused lender Erebor Bank is reportedly in advanced talks to raise about $1.5 billion in a funding round that would value the one-year-old company at roughly $9.5 billion.
The round is expected to include major commitments from Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and SV Angel, alongside existing investors such as 8VC and Haun Ventures.
Erebor has rapidly expanded its deposit base, with total deposits rising from $1.1 billion at the end of March to $4.6 billion by the end of July, driven largely by clients in crypto, artificial intelligence, defense and manufacturing.
The bank also serves payment companies, investment funds and trading firms, with planned services spanning deposits, lending, stablecoin products, treasury management and payments.
Erebor received final U.S. regulatory approval to operate in February. Regulators require the bank to maintain a minimum 12% leverage ratio during its first three years, making fresh capital important as its balance sheet expands.
The bank has already begun deploying credit, including a $200 million facility for nuclear startup Valar Atomics.
Erebor was valued at about $4.35 billion earlier this year, meaning the proposed financing would more than double its private-market valuation within a matter of months. $BTC
Tech-focused lender Erebor Bank is reportedly in advanced talks to raise about $1.5 billion in a funding round that would value the one-year-old company at roughly $9.5 billion.
The round is expected to include major commitments from Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and SV Angel, alongside existing investors such as 8VC and Haun Ventures.
Erebor has rapidly expanded its deposit base, with total deposits rising from $1.1 billion at the end of March to $4.6 billion by the end of July, driven largely by clients in crypto, artificial intelligence, defense and manufacturing.
The bank also serves payment companies, investment funds and trading firms, with planned services spanning deposits, lending, stablecoin products, treasury management and payments.
Erebor received final U.S. regulatory approval to operate in February. Regulators require the bank to maintain a minimum 12% leverage ratio during its first three years, making fresh capital important as its balance sheet expands.
The bank has already begun deploying credit, including a $200 million facility for nuclear startup Valar Atomics.
Erebor was valued at about $4.35 billion earlier this year, meaning the proposed financing would more than double its private-market valuation within a matter of months. $BTC