Robinhood leverages its closed-end fund to back Erebor's pioneering efforts in revolutionizing financial services.
Robinhood Ventures Fund I has purchased $30 million of preferred stock in Erebor Bank, a nationally chartered US lender, according to an Oct. 21 announcement .
Sarah Pinto, president of Robinhood Ventures Fund I, said the banking industry was ready for innovation and that Erebor could become an important financial infrastructure provider for America’s innovation economy.
Founded in 2025, Erebor counts Palmer Luckey, Owen Rapaport, Jacob Hirshman, Aaron Pelz and Trevor Capozza among its founders. Its backers include Valor Equity Partners, Lux Capital and 8VC, among others.
The lender targets defense technology, hard tech and crypto businesses, providing blockchain-enabled payments, crypto-backed loans and financing for AI infrastructure. It has also expanded its industrial lending business.
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Erebor co-founder and chairman Jacob Hirshman said the bank was created to serve companies behind US innovation and reindustrialization with modern technology and banking services designed around their needs.
The bank received its full OCC national charter and FDIC insurance in February 2026 and has grown its deposit base to more than $7 billion.
The deal is expected to support Robinhood Ventures Fund I’s goal of giving retail investors access to private-market opportunities through a concentrated portfolio of frontier companies.