Source: Business Insider
Summary
Sabertooth VC founder used a network of limited partners (LPs) to invest in startups like Anthropic, Anduril, and SpaceX, bypassing the traditional venture fund model. The approach allowed for quicker investment decisions and a more agile strategy. The investments were made over the course of a year, with the LPs committing capital on a deal-by-deal basis.
Our Reading
The launch follows a familiar script.
Sabertooth VC’s unconventional approach to investing is being hailed as innovative, but it’s essentially a rebranded version of syndicated investing. The firm’s ability to move quickly and invest in high-profile startups like SpaceX is impressive, but it’s not a new playbook. Meanwhile, the use of a “captive network” of LPs sounds suspiciously like a party we’ve all been to before.
Author: Evan Null
Highlights
VC Firm Ditches Traditional Fund Model
Sabertooth Invests in Anthropic, Anduril, and SpaceX
LPs Commit Capital on a Deal-by-Deal Basis
Investment Strategy Bypasses Traditional Venture Fund Model
Founder’s Unconventional Approach Raises Eyebrows
The Sabertooth VC founder’s decision to ditch the traditional venture fund model in favor of a more agile, deal-by-deal approach has some in the industry taking notice. But is this really a new way of doing things, or just a rebranded version of syndicated investing?
The use of a “captive network” of LPs to invest in startups like Anthropic, Anduril, and SpaceX is certainly impressive, but it’s not a new playbook. And the fact that the firm was able to move quickly and invest in high-profile startups is, well, not exactly a surprise.
So what’s the real innovation here? Is it the ability to move quickly and invest in hot startups, or is it just a clever rebranding of a tried-and-true strategy? Only time will tell, but for now, it’s just another example of the tech industry’s love affair with shiny new things.
The Sabertooth VC founder’s approach may be unconventional, but it’s not exactly revolutionary. And the fact that the firm is getting attention for its “innovative” approach is, well, a little rich. After all, this is an industry that’s always looking for the next big thing, even if it’s just a rehashed version of something that’s been around for years.
