Erebor at $9.5 billion: the bank that replaced Silvergate in six months

Palmer Luckey and Joe Lonsdale’s nationally chartered bank has $4.6 billion in deposits, $100 million in annualized revenue, and a valuation higher than most publicly traded banks. It opened in February. Here is what that pace means for crypto banking. Summary Erebor Bank is in advanced talks to raise approximately $1.5 billion at an $8 billion pre-money valuation, which would result in a roughly $9.5 billion post-money valuation, making it the most valuable private bank in the United States less than six months after opening for business. The bank’s deposits grew from $1.1 billion at the end of March to $4.6 billion by the end of July, a rate of approximately $1 billion per month, with annualized recurring revenue exceeding $100 million, growth metrics that no traditional bank has achieved in a comparable timeframe. Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz, and SV Angel are expected to participate in the round, with existing investors 8VC and Haun Ventures also committing, a syndicate that spans defense tech, crypto venture, and traditional Silicon Valley investing. Erebor received the first new national bank charter approved during the current admini...