Erebor is in late-stage discussions to secure about $1.5 billion in fresh capital at an $8 billion pre-money valuation. This financing would mark a sharp step-up for the U.S. lender. The bank was created after Silicon Valley Bank’s collapse, and the new round would add to its rapid growth since winning the final green light to operate in February.

People familiar with the talks told the Financial Times that venture firms including Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and Ron Conway’s SV Angel are expected to take meaningful positions in the raise. The same people said demand has been strong and the deal could be completed within the next few weeks.

The company’s backers also include existing investors such as Joe Lonsdale’s 8VC and Haun Ventures, who are expected to keep supporting the business in this transaction. Earlier this year, Erebor raised money at a $4.35 billion valuation.

Since receiving its final approvals in February, deposits climbed to $4.6 billion as of the end of July, the Financial Times added. A person familiar with the numbers also said the bank has moved past $100 million in annualized recurring revenue.

Erebor has positioned itself as a lender to newer, capital-hungry businesses spanning areas like energy and defense, including work financing nuclear start-up Valar Atomics.

"There’s this reindustrialization of the U.S., where you have these companies that are going to need a financial partner that really understands how they work," one investor told the outlet.

Another investor told FT the bank stands out for how quickly it has scaled and returned to the market for more funding, and pointed to a longer private-market runway as start-ups postpone IPOs. That investor added the firm "want[s] to be a globally systematic important bank . . . they’re doing marquee deals."

In a filing last year, the bank said it planned to focus on businesses in the U.S. "innovation economy," including tech tied to virtual currencies, AI, defense and manufacturing, while also serving individuals working in or backing those sectors. 

The bank is headquartered in Columbus, Ohio, and its founding team includes Palmer Luckey alongside Owen Rapaport, Jacob Hirshman, Trevor Capozza, and Aaron Pelz. Board members have included former U.S. official Michael Mosier and former American Express executive Anré Williams.

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