J2 Ventures, a firm predominantly led by U.S. military veterans, announced on Thursday that it has raised a $150 million second fund to support its mission of advancing healthcare solutions for military personnel
The Boston-based organization invests in enterprises that sell their merchandise to the U.S. Department of Defense and civilians.
Although numerous emerging VCs are experiencing difficulty in raising their second funds, J2’s most recent vehicle has raised over twice the amount of its $67.5 million debut fund from 2021.
Initially, it may appear that the firm is reaping the rewards of the increasing interest of venture capitalists in defense technology. However, J2 has yet to establish itself as an investor in defense technology.
“Our portfolio is national-security adjacent but not defense-focused,” stated Alexander Harstrick, J2’s managing partner.
The organization refrains from investing in technologies to safeguard critical national infrastructure or prevent attacks, including drones, robotics, and surveillance technology.
Conversely, J2 endorses organizations that contribute to the healthcare and well-being of nearly three million individuals employed by the United States Military.
Harstrick stated that the Department of Defense has historically implemented new technologies before their widespread adoption by civilians. Additionally, the military was partially responsible for the development of the Internet.
Harstrick stated that the Department of Veterans Affairs was the first to implement telemedicine. “They were also the first to implement electronic health records.”
Tasso, a manufacturer of needle-free blood draw technology, and Lumia Health, a peripheral device that monitors blood flow to the brain, are among the healthcare investments that J2 has made.
Femtosense, a developer of energy-efficient AI chips for smart devices, is among the cybersecurity, infrastructure, and advanced computing ventures that the firm supports.
J2 provides financial support to companies from the pre-seed stage to Series A and issues payments ranging from $1 million to $5 million. The New Mexico State Investment Council and JP Morgan are among the firm’s limited associates.
Harstrick was deployed to Afghanistan and Iraq as a military intelligence officer in the U.S. Army Reserve. He was an investor in the Defense Innovation Unit before establishing J2.
