Peter Thiel, Tech Billionaires Back New Bank for Start-ups, Erebor, After SVB Collapse: Report
2025-07-02 01:36:19
Main Idea
Tech billionaires, including Peter Thiel, are backing a new digital-only bank, Erebor, to fill the void left by Silicon Valley Bank's collapse, focusing on serving start-ups and cutting-edge tech businesses.
Key Points
1. Erebor was formed in response to SVB’s March 2023 collapse, which disrupted funding for start-ups and the broader innovation economy.
2. The bank is the brainchild of Palmer Luckey, founder of defence manufacturing company, and is backed by prominent tech billionaires.
3. Erebor aims to operate as a digital-only bank, targeting global clients and the US banking system, with services delivered through its app and website.
4. Key executives include Jacob Hirshman (ex-Circle) and Owen Rapaport (CEO of Aer Compliance), with Mike Hagedorn (Valley National Bank veteran) as president.
5. Erebor will be headquartered in Columbus, Ohio, with a secondary office in New York.
Description
Peter Thiel has joined a group of prominent tech billionaires backing a new US bank called Erebor, aimed at replacing the role once filled by Silicon Valley Bank, whose collapse in 2023 left a vacuum in financing for start-ups and crypto firms. The proposed bank is the brainchild of Palmer Luckey, founder of defence contractor Anduril, and Joe Lonsdale, a venture capitalist and Palantir co-founder, the Financial Times reported Wednesday. Thiel’s Founders Fund is reportedly among its investors. E...
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