Erebor: Peter Thiel, Palmer Luckey, and Joe Lonsdale launch crypto-friendly bank to replace SVB
Jul 2, 2025
Key Points
- Peter Thiel's Founders Fund, Palmer Luckey, and Joe Lonsdale are launching Erebor, a national bank targeting AI, crypto, defense, and manufacturing startups to fill the lending gap SVB's collapse left behind.
- Erebor's charter application explicitly authorizes virtual currency services and aims to restore venture debt liquidity that historically gave founders 20% extra capital on top of Series A rounds.
- Jacob Hirschman and Owen Rapaport will run the bank as co-CEOs, with headquarters in Columbus, Ohio, while Luckey and Lonsdale remain financial backers without operational roles.
Summary
Peter Thiel's Founders Fund, Palmer Luckey, and Joe Lonsdale are backing a new national bank called Erebor, designed to serve the startup sectors that Silicon Valley Bank abandoned after its 2023 collapse. The bank has applied for a US national bank charter and will target AI, cryptocurrency, defense technology, and advanced manufacturing startups.
SVB's failure left a tangible hole in the venture ecosystem. A $10 million Series A from a top-tier firm typically unlocked a $2 million venture debt line, giving founders an extra 20% in capital for capex and inventory. SVB was among the cleaner venture lenders in a space populated by aggressive players. That liquidity mechanism largely vanished when SVB went down. Erebor is explicitly positioning itself to restore it.
The leadership team signals serious backing. Luckey and Lonsdale will not be involved in day-to-day operations. Co-CEOs Jacob Hirschman (former adviser at crypto firm Circle) and Owen Rapaport (co-founder and CEO of digital asset compliance software) will run the bank, with Mike Hagedorn, a former senior executive vice president at New Jersey-based Valley National, as president. The headquarters will be in Columbus, Ohio.
Erebor's charter application, made public this week, explicitly describes a national bank offering both traditional banking products and virtual currency-related services. The bank targets US tech companies focused on crypto, AI, defense, and manufacturing, plus individuals employed by or invested in those companies. It also plans to serve non-US companies seeking access to the US banking system.
Part of the application remains confidential, including shareholder equity structure and full business plan details. Luckey declined to comment. Lonsdale confirmed he is a financial backer but offered no further details.