Justin Ernest's $20B Exit Validates Startup Investments Without VC Funding

Justin Ernest's Sabertooth Capital deployed nearly $500 million into high-growth startups like Anthropic and SpaceX in the past year, operating without a traditional venture capital fund, according to TechCrunch. Significant capital, directed into 10 companies, shows a shift in how elite investors approach startup investments in 2026.

Sabertooth Capital makes these investments through Special Purpose Vehicles (SPVs), bypassing the established fund structure. This approach allows for capital deployment on a scale comparable to major venture funds, yet avoids their traditional overhead and long lock-up periods.

This model suggests a future where high-impact capital can be deployed with greater agility and less overhead, potentially reshaping the competitive landscape for venture financing.

• Justin Ernest's Sabertooth Capital deployed nearly $500 million into 10 companies over the last 12 months, including Anthropic, Anduril, Databricks, PsiQuantum, and SpaceX, as reported by Startup Fortune and Mezha. Bitcoin World reported a figure of nearly $400 million.
• The firm operates entirely through Special Purpose Vehicles (SPVs), bypassing a traditional venture fund structure, according to TechCrunch.
• Sabertooth Capital recorded a major return from chipmaker Groq, which Nvidia acquired for $20 billion, as stated by Mezha. TechCrunch specified this was a 'licensed and acqui-hired' transaction.
• The portfolio includes companies like Base Power, listed by Mezha, alongside other deep-tech ventures.

A $20 Billion Exit Validates the Strategy

Sabertooth Capital recorded a major return from chipmaker Groq, which Nvidia acquired for $20 billion late last year, according to TechCrunch. This transaction was specifically described as a 'licensed and acqui-hired' deal.

This $20 billion acquisition by Nvidia, also reported by Mezha, provides concrete validation for Sabertooth's SPV-driven investment strategy. It suggests that a concentrated, high-conviction approach can yield significant results comparable to diversified funds.