Erebor, a federally chartered and FDIC-insured bank targeting crypto, artificial intelligence, defense, and other capital-intensive technology sectors, is in advanced talks to raise approximately $1.5 billion at an $8 billion pre-money valuation, according to a Financial Times report citing people familiar with the discussions. A completed round would imply a post-money valuation of roughly $9.5 billion, marking a dramatic repricing for an institution that was founded to fill the gap left by Silicon Valley Bank’s 2023 collapse.
The fundraising comes only six months after Erebor began operating as a nationally chartered U.S. bank in February 2026. Despite its youth, deposits have ballooned from $1.1 billion in March to $4.6 billion by July, and annualized recurring revenue has already surpassed $100 million. The bank is attracting a broad group of technology investors including Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz, Ron Conway’s SV Angel, as well as existing backers 8VC and Haun Ventures. Demand is reportedly strong, and the financing could close within weeks.
Erebor’s strategy extends beyond simple crypto-friendly banking. It plans to offer credit lines backed by cryptocurrency or private securities, financing for AI chips, stablecoin products, treasury management, and payment services. The bank has already begun expanding its lending operations, including a $200 million facility for nuclear startup Valar Atomics. The rapid deposit growth and ambitious product roadmap signal that investors are betting on Erebor’s ability to underwrite unconventional assets that traditional banks often avoid, blending crypto and AI banking into a specialized franchise supported by a national charter and FDIC insurance.
