Erebor is in late-stage discussions to secure about $1.5 billion in fresh capital at an $8 billion pre-money valuation.
This financing would mark a sharp step-up for the U.S. lender.
The bank was created after Silicon Valley Bank’s collapse, and the new round would add to its rapid growth since winning the final green light to operate in February.
People familiar with the talks told the Financial Times that venture firms including Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and Ron Conway’s SV Angel are expected to take meaningful positions in the raise.
The same people said demand has been strong and the deal could be completed within the next few weeks.
