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How One Investor Deployed $400M in AI Startups Without a VC Fund

TechCrunch Venture •
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Justin Ernest built Sabertooth VC by bypassing traditional venture capital, directly securing stakes in top AI companies like Anthropic and Anduril. With nearly $400 million deployed across 10 deals, he uses special purpose vehicles to connect family offices with coveted late-stage allocations.

Ernest leveraged his five years at Playground Global to identify a market gap: institutional investors wanted AI exposure but lacked access. Instead of waiting 12-18 months for fund setup, he moves quickly, writing checks from $10 million to $275 million per deal through company-approved rounds.

Family offices trust his approach. When PsiQuantum's CFO recommended Benjamin Wagner invest through Sabertooth, it validated Ernest's reputation. Unlike fly-by-night aggregators, he's viewed as a legitimate investor with technical expertise and direct founder relationships.

Early returns prove his strategy works. Groq was acquired by Nvidia for $20 billion, delivering major gains. With SpaceX's IPO and Anthropic's public listing ahead, Ernest aims to eventually launch a traditional fund, using these SPV successes as proof of his track record.