J2 Ventures, a Boston-based firm led by U.S. military veterans, has announced the successful raising of a $150 million second fund. This is a significant increase from their debut fund of $67.5 million in 2021, indicating strong investor confidence and interest in the firm’s unique investment strategy.
While many venture capital firms are currently struggling to secure second funds, J2 Ventures stands out due to its focus on startups whose products are purchased by civilians and the U.S. Department of Defense. However, it is important to note that J2 does not position itself as a defense tech investor. Instead, the firm’s portfolio is “national-security adjacent” rather than defense-focused.
According to Alexander Harstrick, 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 tech. Instead, J2 backs companies whose products contribute to the well-being and healthcare of the nearly 3 million people employed by the U.S. Military.
Harstrick further explains that the U.S. Department of Defense has historically been an early adopter of new technologies, even before they become popular with civilians. He cites examples such as the Department of Veterans Affairs being the first to use telemedicine and adopt electronic health records. This insight highlights the potential for significant market adoption and growth in sectors supported by J2’s investments.
J2’s healthcare investments include Tasso, a company specializing in needle-free blood draw technology, and Lumia Health, which develops wearable devices that measure blood flow to the brain. These investments align with J2’s mission to support innovations that enhance healthcare for military personnel.
In addition to healthcare, J2 also invests in cybersecurity, infrastructure, and advanced computing startups. One notable investment is Femtosense, a developer of energy-efficient AI chips for smart devices. By diversifying their portfolio across various sectors, J2 Ventures aims to maximize its potential for significant returns while supporting companies that align with its mission.
J2 typically invests in companies at the pre-seed stage to Series A and writes checks ranging from $1 million to $5 million. Its impressive list of limited partners includes JP Morgan and the New Mexico State Investment Council, further demonstrating the firm’s credibility and ability to attract top-tier investors.
Alexander Harstrick brings a unique perspective to J2 Ventures as a military intelligence officer in the U.S. Army Reserve who has served in Iraq and Afghanistan. His experience and expertise in defense and national security contribute to the firm’s strategic investment decisions and understanding of the market.
Overall, J2 Ventures’ success in raising a substantial second fund reflects the growing interest in startups that serve both civilian and military sectors. By focusing on national-security adjacent investments rather than traditional defense tech, the firm positions itself at the forefront of innovation in healthcare, cybersecurity, infrastructure, and advanced computing. With strong financial backing and experienced leadership, J2 Ventures is well-positioned to support emerging companies and contribute to their growth and success.
