Sabertooth VC deploys $400m in AI and deep tech via SPV model
The firm has invested in ten high-profile companies, including Anthropic and SpaceX, leveraging a network of 30 limited partners to navigate restricted cap tables.
Justin Ernest, founder of Sabertooth VC, has deployed nearly $400 million into ten high-profile startups over the past 12 months, utilising special purpose vehicles (SPVs) to bypass the traditional venture capital fundraising cycle. Instead of raising a formal fund, a process that typically takes 12 to 18 months, Ernest leveraged his network to secure allocations in official, company-approved funding rounds for later-stage companies.
The investments include significant stakes in artificial intelligence and deep tech firms such as Anthropic, Anduril, Databricks, PsiQuantum, and SpaceX. Sabertooth structures each deal as a separate SPV, allowing a network of approximately 30 smaller institutional investors and family offices to purchase shares in the vehicle that owns the underlying stock. Individual investment checks from these limited partners range from $10 million to $275 million.
This model has proven effective in an environment where startups are increasingly cracking down on unauthorised SPVs. Benjamin Wagner, a chief investment officer for a family office, noted that PsiQuantum’s chief financial officer specifically suggested investing through Sabertooth. Wagner cited Ernest’s technical expertise and legitimacy as key differentiators from other organisations that simply aggregate capital, describing the firm as a vetted channel for limited partners seeking access to restricted cap tables.
Ernest, who previously spent over five years at Playground Global, credits his ability to secure stock allocations to his extensive network and communication skills. He described his limited partners as a "captive set," stating he can secure capital for new SPVs with just a few phone calls. This approach allows the firm to move quickly and secure significant share chunks in highly coveted companies without the delays associated with traditional fund formation.
Sabertooth has already realised a major return from chipmaker Groq, which was acquired by Nvidia for $20 billion late last year. The firm anticipates further gains from the upcoming initial public offerings of SpaceX and Anthropic. While Ernest aims to raise a traditional venture fund in the long term, he believes the track record established through these SPVs will demonstrate the returns necessary to attract institutional capital for a broader fund in the future.
