Observed Signal · Jun 9, 2026 · Funding · Source: techcrunch · Impact: 2/5 · Sentiment: Neutral
Justin Ernest Invested Nearly $400M via SPVs
Justin Ernest used his investor and founder network to create Sabertooth VC, which over the past 12 months has deployed nearly $400 million into 10 later-stage companies by securing allocations and offering single-deal special purpose vehicles (SPVs) to about 30 smaller institutional investors and family offices. Targets include Anthropic, Anduril, Databricks, PsiQuantum and SpaceX. Sabertooth writes checks ranging from $10 million to $275 million and participates in company-approved rounds. Ernest says he prefers SPV-based, deal-by-deal capital raises to launching a traditional fund now, but aims to establish a conventional venture fund eventually. The firm already realized a major return from Groq’s exit to Nvidia and expects further gains from upcoming listings.
Shows an alternative capital-raising model (deal-by-deal SPVs) that gives family offices access to late-stage AI and deep-tech startups and may affect how late-stage allocations and pre-IPO liquidity are sourced, but it's not a platform-level policy or industry-shifting regulatory event.
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Key Takeaways & Evidence Grounding
- Sabertooth VC invested nearly $400 million into 10 companies over the past 12 months.
- Portfolio companies named in the article include Anthropic, Anduril, Databricks, PsiQuantum and SpaceX.
- Sabertooth structures most deals as single-deal special purpose vehicles (SPVs) and offers allocations to roughly 30 smaller institutional investors and family offices.
- Sabertooth writes checks ranging from $10 million to $275 million and participates in official, company-approved funding rounds.
- Sabertooth realized a major return from chipmaker Groq, which was licensed and acqui-hired by Nvidia for $20 billion.
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