A group of billionaires, led by Peter Thiel, is planning to launch Erebor Bank to fill the void left by the collapse of Silicon Valley Bank (SVB) in March 2023. Erebor Bank will cater to startups and cryptocurrency companies and has applied for a US bank charter. Thiel’s Founders Fund is among the initial investors, alongside other notable figures like Palmer Luckey and Joe Lonsdale. Before its downfall, SVB had established deep connections with crypto firms and venture capital. Its closure resulted from a bank run triggered by rising interest rates, leading to significant repercussions across the banking sector and affecting the venture capital ecosystem significantly. The new bank aims to become a key lender for early-stage startups and riskier firms struggling with capital access due to tightened banking regulations. Despite its collapse, SVB still operates under First Citizens Bank, focusing on private equity, technology, and life sciences. The Erebor initiative seeks to restore some of the lost support for innovative companies in the wake of SVB's failure.

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