Tech’s new ‘Lonely Mountain’: Billionaires join hands to guard start-up treasures in Silicon Valley

A group of tech entrepreneurs led by Palmer Luckey, co-founder of military contractor Anduril, is preparing to launch a US bank aimed at serving start-ups and cryptocurrency businesses, filling a void left by the collapse of Silicon Valley Bank (SVB).

The new institution, to be named Erebor, has applied for a national bank charter, according to a regulatory filing made public this week. Erebor is backed by a roster of prominent technology investors, including Joe Lonsdale, founder of venture capital firm 8VC and a co-founder of defence company Palantir. Founders Fund, the venture capital group launched by Peter Thiel, is also among the investors, Financial Times cited two people familiar with the matter as saying.

According to the application, “the bank will be a national bank . . . providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals.” Erebor intends to target companies in what it describes as the “innovation economy,” with a focus on virtual currencies, artificial intelligence, defence, and manufacturing.

The filing said the bank would also serve individuals who work for or invest in these companies, and would work with non-US firms “seeking access to the US banking system.”

Reference

https://www.firstpost.com/tech/techs-new-lonely-mountain-billionaires-join-hands-to-guard-start-up-treasures-in-silicon-valley-13902407.html