Justin Ernest deployed nearly $500 million into high-growth startups without a conventional VC fund

Last year, Justin Ernest identified a fundamental gap in venture capital: family offices and smaller institutional investors were desperate to access the fastest-growing AI companies but remained locked out of their cap tables. Having spent over five years at Playground Capital, where he focused on deep tech and led fundraising efforts, Ernest was confident his network could bridge that chasm. Rather than embarking on the arduous process of launching a formal VC fund—which typically requires 12 to 18 months—he secured allocations in high-profile later-stage companies. He subsequently offered these deals to approximately 30 smaller investors through special purpose vehicles (SPVs), single-asset funds, and nominee structures, the latter allowing his firm, Sabertooth Capital, to hold shares on behalf of participants. Over the past 12 months, Sabertooth has committed nearly $500 million across 10 companies, including Anthropic, Anduril, and SpaceX. Each deal constitutes its own separate fund, with checks ranging from $10 million to $275 million, all within official funding rounds. Benjamin Wagner, CIO of a family office, lauded Ernest as an “authentically an investor” with technical judgment and expertise. Wagner noted that PsiQuantum’s CFO directed him toward Sabertooth, underscoring the firm’s legitimacy. Ernest’s reputation has been reinforced by his technical acumen—a Harvard Business School graduate who overcame a childhood speech impediment—and his strategic deployment of a robust network. He can typically raise capital for a new SPV from his LPs after merely four or five phone calls. Sabertooth has already realized a significant return from Groq, which was acquired by Nvidia for $20 billion. Anticipated events include SpaceX’s IPO this Friday and Anthropic’s forthcoming public listing. Although SPVs lack the institutional prestige of traditional venture funds, Ernest believes this approach will substantiate his track record before he eventually transitions to a formal fund. He remarked, “I think this will end up being one of the best vintages of our lifetime.”