Erebor’s Fundraise Follows SVB Collapse
WIRED
Palmer Luckey, cofounder of the weapons manufacturer Anduril, along with firms connected to Palantir cofounders Joe Lonsdale and Peter Thiel, are investing in a new bank that is aiming to fill a gap left by Silicon Valley Bank’s collapse two years ago. The venture is expected to be backed by upwards of $250 million in funding from Luckey, Lonsdale’s venture firm 8VC, Thiel’s Founders Fund, crypto-focused VC Haun Ventures, and several angel investors whose identities are not yet publicly known.
Like Anduril and Palantir, Erebor Bank is named after a term coined by J.R.R. Tolkien. (Introduced in The Hobbit, it’s the name of a mountain where the murderous dragon Smaug hoards gold and jewels.) The bank’s organizers and backers have remained tight-lipped about their vision. But their national bank charter application filed in June with the US Office of the Comptroller of the Currency (OCC), as well as interviews with more than a dozen industry sources, suggest the organizers are leveraging current regulatory openness in banking, as well as their political power, to build a crypto-focused Silicon Valley Bank successor made in their image.
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