Justin Ernest Invested Nearly $400M in Startups Without Traditional VC Fund
Justin Ernest, a former Playground Global investor with over five years of experience, identified a gap where family offices and smaller institutional investors could not access fast-growing AI company cap tables. Instead of launching a formal VC fund, which he says takes 12 to 18 months, Ernest used his network to secure stock allocations in high-profile later-stage companies. He offers these individual deals to roughly 30 smaller institutional investors through Special Purpose Vehicles (SPVs), treating each deal as a separate fund. Over the past 12 months, his firm Sabertooth VC has invested nearly $400 million across 10 companies, including Anthropic, Anduril, Databricks, PsiQuantum, and SpaceX. Sabertooth writes checks ranging from $10 million to $275 million, always participating in official, company-approved funding rounds. Benjamin Wagner, a CIO for a family office, said his firm’s attempt to invest directly in PsiQuantum led the company’s CFO to suggest investing through Sabertooth, validating Ernest’s reputation among startups. Ernest, a Harvard Business School graduate who largely overcame a childhood speech impediment, aims to eventually raise a traditional VC fund but believes his SPV strategy builds a strong track record.
What’s reported
Justin Ernest spent over five years at Playground Global investing in deep tech and helping lead fundraising.
He noticed a gap: family offices and smaller institutional investors wanted to invest in fast-growing AI companies but could not access their cap tables.
Instead of a formal VC fund, he uses his network to secure allocations in later-stage companies and offers them to about 30 smaller institutional investors via SPVs.
In the last 12 months, Sabertooth VC has invested nearly $400 million into 10 companies: Anthropic, Anduril, Databricks, PsiQuantum, and SpaceX.
Checks range from $10 million to $275 million, all in official, company-approved rounds.
Benjamin Wagner, a CIO for a family office, said PsiQuantum’s CFO suggested investing through Sabertooth.
Ernest is a Harvard Business School graduate who largely overcame a childhood speech impediment.
Sabertooth had a major return from chipmaker Groq, which was licensed and acqui-hired by Nvidia for $20 billion late last year.
Next investments include SpaceX’s IPO this Friday and Anthropic’s expected public listing later this year.
Ernest’s ultimate goal is to eventually raise a traditional venture fund.
Key figures
Justin Ernest, founder of Sabertooth VC, former Playground Global investor
Benjamin Wagner, CIO for a family office managing wealth of 50 individuals
Sources: TechCrunch
