Robinhood’s Retail Fund Buys $30 Million Stake in Erebor Bank, Co-Founded by Palmer Luckey

Robinhood Ventures Fund I (NYSE:RVI) has invested $30 million in Erebor Bank, the technology-focused lender co-founded by defense tech entrepreneur Palmer Luckey, adding another private-market investment to its portfolio.

The closed-end fund purchased preferred shares in Erebor Bank, National Association, in a transaction completed on Sept. 17, Robinhood said Wednesday in a newsroom post.

The investment gives RVI shareholders exposure to a bank targeting businesses across artificial intelligence, defense, robotics and other technology-heavy industries.

"I believe the banking sector is ripe for innovation, and that the team at Erebor is positioned to disrupt the status quo," said Sarah Pinto, RVI’s president. She described the bank as potential foundational financial infrastructure for the U.S. innovation economy.

Erebor is building its business around companies that need banking services tailored to emerging technologies and industrial development. Co-founder and chairman Jacob Hirshman said the bank was established to serve businesses driving innovation and reindustrialization.

"We’re glad to have RVI’s retail investors alongside us," Hirshman said.

Founded in 2025, Erebor counts Luckey, Owen Rapaport, Hirshman, Aaron Pelz and Trevor Capozza among its founders. Its backers include Valor Equity Partners, Lux Capital and 8VC, Robinhood noted.

The bank received a national charter from the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. insurance in February 2026. It has since grown its deposits to more than $7 billion.

Retail Investors Get Another Route Into Private Markets

The investment adds to RVI’s portfolio as Robinhood seeks to give individual investors access to companies that typically remain outside public markets.

The fund began trading in March and invests in a concentrated group of companies, primarily private businesses. Robinhood expects to add holdings over time.

Unlike traditional private investment vehicles that may require investors to meet accreditation standards or commit substantial sums, RVI is designed to be accessible to retail investors without accreditation or minimum investment requirements. The fund also does not charge performance fees.

The structure gives everyday investors a way to gain exposure to private companies through a publicly traded fund, although its shares can trade at a premium or discount to the value of its underlying assets.

RVI’s investment in Erebor extends that strategy into financial services, backing a lender focused on the technology and industrial sectors that have attracted growing investor interest.

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