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Justin Ernest's model bypasses traditional fund formation by utilizing SPVs to grant family offices direct equity access to high-profile late-stage AI and deep tech companies. This approach effectively bridges the liquidity gap for smaller institutional investors seeking exposure to top-tier cap tables without the long lead times of standard fundraising. The strategy relies heavily on Ernest's technical credibility and reputation to secure allocations in major rounds, offering a streamlined alternative to conventional venture capital structures.

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How Justin Ernest invested nearly $500M into hot startups without a traditional VC fund

TechCrunchJune 9, 20264 min read

Instead of spending a year raising a formal venture fund, the Sabertooth VC founder used a captive network of LPs to invest in startups like Anthropic, Anduril, and SpaceX.

Last year, Justin Ernest noticed a massive gap in how venture capital was working: family offices and smaller institutional investors were eager to invest in the fastest-growing AI companies but couldn’t get access to those cap tables. Having spent over five years at Playground Global investing in deep tech and helping lead fundraising, Ernest was confident his connections to both investors and founders would allow him to bridge that gap. Instead of launching a formal…

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