Erebor Bank nears $1.5B raise at $8B pre-money valuation

Crypto friendly Erebor Bank is nearing a roughly $1.5 billion funding round at an $8 billion pre-money valuation, according to people familiar with the discussions cited by the FT. Summary Financial Times reports Erebor is nearing a $1.5 billion raise at $8 billion pre-money valuation. Regulatory data show Erebor held $4.06 billion in deposits by June 30, according to filings. The Financial Times reported deposits rose further to $4.6 billion by the end of July. Erebor led a $200 million Valar Atomics credit facility alongside JPMorgan and two other lenders. Regulators require Erebor to maintain at least 12% Tier 1 leverage ratio for three years. The talks come only six months after the Columbus, Ohio lender received final approval to open as a U.S. national bank. Erebor has not announced the financing and declined to comment to the newspaper, meaning the size, valuation and investor commitments remain subject to change. Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and SV Angel are expected to make commitments, while existing investors 8VC and Haun Ventures are also reportedly participating. The $8 billion figure is before the proposed new capital is added...