Tech Entrepreneur Palmer Luckey's New Digital Bank Targets $2B Valuation Amid Crypto Surge
Tech entrepreneur Palmer Luckey's latest venture, digital bank Erebor, is set to raise $225 million at a $2 billion valuation. The startup aims to bridge traditional banking with cryptocurrency services, backed by prominent Silicon Valley investors.
Palmer Luckey, founder of Anduril and Oculus, launches new digital banking venture Erebor
Silicon Valley's Latest Financial Innovation Venture
Palmer Luckey, the entrepreneur behind defense tech company Anduril, is making waves in the financial technology sector with his latest venture - a digital bank named Erebor. The startup is reportedly raising $225 million at a $2 billion valuation, marking a significant entry into the digital banking space.
Strategic Backing from Tech Veterans
The venture has attracted heavyweight investors including Founders Fund, led by Palantir co-founder Peter Thiel, and 8VC, headed by Joe Lonsdale. This backing demonstrates growing confidence in the intersection of traditional banking and cryptocurrency services.
Leadership and Vision
Erebor will be helmed by co-CEOs Jacob Hirshman, formerly of Circle, and Owen Rapaport, who previously founded Aer Compliance. Mike Hagedorn, an experienced banking executive, will serve as president.
The bank's strategic focus includes:
- Providing crypto-collateralized lending services
- Serving startup companies and crypto clients
- Operating under a US bank charter
Innovation in Digital Banking
This development comes at a crucial time for digital banking and cryptocurrency adoption in the financial sector. Circle's successful IPO and subsequent 113% share price increase highlights growing market confidence in crypto-focused financial services.
Palmer Luckey's Track Record
Luckey's entrepreneurial journey includes founding Oculus VR at age 19, which he sold to Meta (formerly Facebook) for $2 billion, and establishing Anduril Industries, now valued at $30.5 billion. This new venture represents his latest effort to reshape traditional industries through technological innovation.
Jack Thompson
Reporter based in Sydney, Jack covers climate issues, migration policies, and Australia's Indo-Pacific strategy.