J2 Ventures, a venture capital firm led largely by U.S. military veterans, announced Thursday that it has raised $150 million in its second fund. The Boston-based firm invests in startups whose products are purchased by civilians and the U.S. Department of Defense.
While many startup venture capital firms struggle to raise second funds, J2’s latest vehicle is more than double its first fund of $67.5 million in 2021.
At first glance, the company might seem to be benefiting from the growing interest of venture capital firms in defense technology. But J2 has no interest in positioning itself as an investor in defense technology.
“Our portfolio is focused on national security, but it’s not focused on defense,” said Alexander Harstreich, J2’s managing partner. The firm does not invest in technologies that protect critical national infrastructure or help deter attacks, such as drones, robotics or surveillance technology.
Instead, J2 supports companies whose products help maintain the health and well-being of nearly 3 million people US Army Officer.
Historically, the Department of Defense has adopted new technologies before they became commonplace among civilians, Harstrick said. And it’s not just the Internet that has been Partially developed by Army.
“The VA was the first to use telemedicine, and it was the first to adopt electronic health records,” Harstrick said.
J2’s healthcare investments include Tasso, a maker of needle-free blood-drawing technology, and Lumia Health, a wearable device that measures blood flow to the brain.
The company also backs startups in cybersecurity, infrastructure, and advanced computing such as Femtosense, a developer of power-efficient AI chips for smart devices.
J2 backs companies in pre-seed through Series A funding, writing checks ranging from $1 million to $5 million. The firm’s limited partners include J.P. Morgan and the New Mexico State Investment Board.
Harstrick served as a military intelligence officer in the U.S. Army Reserve and was deployed to Iraq and Afghanistan. Prior to founding J2, he was an investor in the Defense Innovation Unit.