How Justin Ernest invested nearly $400M into hot startups without a traditional VC fund

Justin Ernest built Sabertooth VC around a captive network of limited partners rather than spending a year raising a conventional venture fund. That structure let him deploy nearly $400M into high-demand startups including Anthropic, Anduril, and SpaceX.

The approach reflects a broader shift toward more flexible venture models as investors seek faster access to competitive private deals. If successful, captive LP networks could pressure traditional funds by offering founders and backers a leaner alternative to standard fund cycles.

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