J2 Ventures, a firm primarily led by U.S. military veterans, recently announced the successful raising of a $150 million second fund. Based in Boston, the firm focuses on investing in startups that cater to both civilian consumers and the U.S. Department of Defense.
Despite the challenges faced by many emerging VC firms in raising subsequent funds, J2 Ventures has managed to more than double the size of its original $67.5 million debut fund from 2021.
While it may appear that J2 is capitalizing on the increasing interest in defense technology investments, the firm is not positioning itself as a defense tech investor.
“Our portfolio is focused on national-security adjacent industries, not defense-specific,” explained Alexander Harstrick, Managing Partner at J2. The firm avoids technologies aimed at safeguarding critical national infrastructure or aiding in defense strategies, such as drones, robotics, or surveillance tech.
Instead, J2 supports companies that contribute to the well-being and healthcare of the nearly 3 million people employed by the U.S. Military.
Harstrick highlighted the DoD’s history of early technology adoption, often before civilian markets catch on. This trend extends to areas like telemedicine and electronic health records, both pioneered by government agencies like the Department of Veterans Affairs.
J2’s healthcare investments include Tasso, a company specializing in needle-free blood draw technology, and Lumia Health, which produces a wearable device measuring blood flow to the brain.
In addition to healthcare, J2 also invests in cybersecurity, infrastructure, and advanced computing startups like Femtosense, known for developing energy-efficient AI chips for smart devices.
J2 typically supports companies ranging from the pre-seed stage to Series A, providing investments between $1 million and $5 million. Noteworthy limited partners of the firm include JP Morgan and the New Mexico State Investment Council.
Prior to founding J2, Harstrick served as a military intelligence officer in the U.S. Army Reserve with deployments in Iraq and Afghanistan. He also gained experience as an investor at the Defense Innovation Unit.
