Banker @ereborbank | Survive and advance
New York, NY
Joined June 2012
- Tweets1.9K
- Following994
- Followers2.3K
- Likes3.1K
Suzanne Dannheim retweeted
A bank for the builders
xitter.gq/FT/status/208677815710…
Start-up bank backed by Palmer Luckey set to raise $1.5bn ft.trib.al/Py1G9Xu
Suzanne Dannheim retweeted
🚨 BREAKING: Erebor is at $4.05bn in deposits, per Bloomberg. Their March call report said $1.1bn.
Nearly 4x in a single quarter, for a bank that only got its full national charter in February. They're now in talks to raise at an $8bn+ valuation, up from $4.35bn in December.
Founded by Palmer Luckey. Backed by Founders Fund, 8VC and Lux Capital. They went from OCC application to full charter in roughly 9 months. Paxos, Ripple, Circle and Stripe have all filed for trust charters. None of them operates a full depository bank.
Three details buried in the Bloomberg reporting:
1. They added roughly 400 customers this quarter while deposits grew ~$3bn. Even if every new dollar came from new customers, the average account is north of $7m. A small number of very large depositors, nearly all above the FDIC cap.
Sound familiar?
2. Demand for crypto-backed lending came in *below* their expectations. The product winning is the boring one: a deposit account that stays open.
3. Luckey went out of his way to say none of this quarter's growth came from his own companies. When the CEO pre-empts that criticism, you know it landed the first time.
My read: after Chokepoint 2.0 and SVB, "we will bank you" is the product. The charter is the moat. The 24/7 stablecoin rails are features.
And yes, fast-growing, concentrated, uninsured, correlated deposits are exactly the shape SVB was. The difference so far: per the Q1 call report, Erebor holds zero loans. It's operating closer to a narrow bank than a lender.
$8bn on roughly $1bn of equity is ~8x book. JPMorgan trades at ~2.4x.
Investors are pricing a bank charter like software. – at Romford, London
Suzanne Dannheim retweeted
Palmer Luckey on Erebor, his new bank just valued at over $4B:
"We'll have the most conservative loan-to-deposit ratios of any bank in history."
"I'm not a finance bro. I want something like Erebor to exist because of and for the sake of my love for these other technologies."
Suzanne Dannheim retweeted
Announcing Valar Atomics' $1B series B led by Sequoia, with Valor Equity Partners, Atreides, Point72, Conviction, and others.
Alongside the $1B equity, we have closed a $200m credit facility led by Erebor and JPM.
I'm excited to welcome Shaun Maguire from Sequoia to our board.
It is remarkable how many people in the exit row, after being asked for a clear verbal “yes” that they’re able to help in an emergency, respond with other things
Head nods, half-smiles, “my wife says yes for me 🤣”
anyways, see you at BTC Vegas
Suzanne Dannheim retweeted
Jamie Dimon was asked about @ereborbank at Hill & Valley. It was my favorite moment of the day:
"I wish them success. We have millions of competitors. If they can do something better than we can, go for it — that's competition.
We've lost a lot to competitors over the years. We've done a lot well, but we also didn't build Stripe. We didn't do some of what Block did. We didn't do Revolut. I want to stay conscious of that.
We know we get our asses kicked every now and then. And if they do a great job for a certain constituency, I can compete with them and do better — or they can compete with me and do better. Both are fine."
Suzanne Dannheim retweeted
If we are serious about getting our TFR above 2.1, we need an executive order making all dining tables pentagons right now. Square tables imply below replacement level TFR!
Suzanne Dannheim retweeted
The real bank for real Americans doing real things!
The cutting-edge business model is based on next-gen concepts like "don't let your client's money disappear", "care at all about national security", and most importantly, "the market sometimes goes down".
Erebor Bank, which will cater to startups and high-net worth individuals, on Friday became the first to receive a national bank charter under the second Trump administration on.wsj.com/3O2PidR
Suzanne Dannheim retweeted
BREAKING: @ereborbank secures final OCC approval, becoming a U.S. national bank
Suzanne Dannheim retweeted
My parents are both lawyers, as is my sister - I come from a legal background. If you have worked at an enterprise, you'll understand the importance of liability risk when deploying new technology. Insurance is a risk transfer mechanism, from an enterprise (or individual) to an insurance market. It's the perfect solution to unlock adoption and enable confident innovation.
AI insurance is the biggest horizontal opportunity for the economy. Every organisation, in every industry is using more and more AI until the only risk remaining will be AI risk. Transferring risk from your enterprise, in an environment of uncertainty, creates certainty - especially when you have the Lloyd's of London (A+ credit rated) market taking the risk for you!
I started @testudoglobal when I saw the AI deployment risk problem staring me in the face and traditional insurance policies absolutely not covering this new amazing technology. We will unlock the AI economy and have a great adventure with great people in doing so. The launch of the AI insurance category with our first product is us executing on our vision of insuring the AI economy.
If you are an enterprise grappling with AI risk, we can help you! If you are a broker wanting to sell our product, please get in touch.
Onwards
If your business has AI risk, you need AI insurance… @testudoglobal has arrived
@iam_gls is a 1-of-1 talent and what he is building at @testudoglobal is going to transform both AI (mitigating risk) and insurance (reinventing security)
Announcing the AI insurance category that we are pioneering at @testudoglobal, on @tbpn!
Suzanne Dannheim retweeted
Insurance isn't where I expected to end up.
When I joined @testudoglobal six months ago, I didn't know much about AI risk or insurance, but I knew what a great team looked like.
One week in London watching them work was all it took.
Every enterprise is deploying AI, and nobody was properly covering the liability.
The team saw that opportunity years ago, and they were moving faster than anyone else.
This week we shipped our first AI insurance policy backed by Lloyd's of London.
This is only the beginning. Proud to be part of it.
Suzanne Dannheim retweeted
Imagine being the CFO of JPM, the pinnacle of your career, only to be trotted out on stage to make the wholly unserious argument that stablecoins (regulated MM funds) rewards are "an obviously dangerous and undesirable thing" because they create competition for your bank.
Come hear the good word & say hello! Keynote on Thursday @SolanaConf in Abu Dhabi.
See you there xx
Suzanne Dannheim retweeted
At BCVC Summit, we ran a debate on one of the spiciest market-structure ideas of the year.
Watch the replay and vote on who made the better argument.
For founders + builders in crypto, here are the key takeaways 🧵
Suzanne Dannheim retweeted
Choosing to work for a “casino” team is a skill issue. You could just work for any of the many high-integrity, focused teams in the space not building solely for a TGE. They exist across L1/2s, perps, yield+ stablecoins, lending, etc.
I could not be more invigorated to work ‘in crypto’ than right now. This is one of the few moments in human history where reinventing market structure, exporting capital markets to the world, and transforming credit/money is possible. If you wake up and are upset with how you spend your time each day you have the agency to change it.
