According to TechCrunch AI, Justin Ernest’s Sabertooth Capital has carved out a niche by using SPVs to funnel investments into late-stage AI startups. While this method offers smaller investors access to coveted deals, it may also expose them to risks associated with less-regulated investment vehicles. The reliance on SPVs could limit diversification and increase dependency on Ernest’s personal network. As the AI sector continues to attract capital, the sustainability of this model remains uncertain, especially as startups tighten control over unauthorized SPVs.
FundingCommentary
Justin Ernest deploys $500M in AI startups via SPVs
Sabertooth Capital uses special purpose vehicles to invest in high-profile AI firms.
AIpressr commentary on an article originally published by TechCrunch AI.
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Read the original article at techcrunch.com →Source: TechCrunch AI, techcrunch.com — Jun 9, 2026
““Justin is authentically an investor,” said Benjamin Wagner, a CIO for a family office managing the wealth of 50 individuals.”
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