A bank that barely existed a year ago is now chasing a valuation most European lenders can only dream of. Erebor was founded by Anduril’s Palmer Luckey and backed by Peter Thiel. It is in talks to raise at a valuation of at least $8bn, and its deposits have almost quadrupled in three months.
That would roughly double the $4.35bn Erebor fetched late last year, according to Bloomberg, which first reported the talks. The company declined to comment, and the discussions are early.
The growth, though, is real. Erebor’s deposit base has jumped from $1.1bn in late March to $4.05bn today. It added nearly 400 customers in three months. It expects to turn a profit by year-end. Not bad for a bank that only won its charter in February.
Filling the SVB-shaped hole
Erebor takes its name from the treasure mountain in Tolkien’s The Hobbit. It is chasing the customers stranded when Silicon Valley Bank collapsed in 2023. It targets two industries close to Washington’s heart: defence technology and cryptocurrency.
