Erebor Bank Reportedly Seeks $1.5B Raise at $9.5B Valuation

Erebor Bank is reportedly in advanced negotiations to raise roughly $1.5 billion in new funding, a deal that would value the year-old tech-focused lender at about $9.5 billion. CoinDesk, citing a Financial Times report, said the round is expected to include major commitments from Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and SV Angel, alongside existing backers including 8VC and Haun Ventures.

The raise matters because Erebor is positioning itself as a banking partner for sectors that often need specialized financial services, including crypto, artificial intelligence, defense and manufacturing. The bank also serves payment companies, investment funds and trading firms, with planned offerings spanning deposits, credit, stablecoin products, treasury management and payments.

Erebor’s balance sheet has grown quickly. According to the report, deposits rose from $1.1 billion at the end of March to $4.6 billion by the end of July, driven by clients in crypto, AI and defense.

The new capital is also tied to regulatory requirements. Erebor received final U.S. approval to operate in February, and regulators require the bank to maintain a leverage ratio of at least 12% during its first three years, making additional funding important as lending and deposits expand.

The bank has already begun moving into credit. Its lending activity includes a $200 million facility for nuclear startup Valar Atomics, with Erebor acting as administrative agent alongside JPMorgan, Crescent Cove and Hercules Capital. The Financial Times also reported that Erebor raised money earlier this year at a $4.35 billion valuation, meaning the proposed deal would nearly double its private-market valuation within months.