J2 Ventures, a firm led mostly by U.S. military veterans, announced Thursday that it has raised $150 million in its second fund. The Boston-based firm invests in startups that buy products from civilians and the U.S. Department of Defense.
While many new VCs struggle to raise secondary funds, J2’s latest fund is more than double the size of its $67.5 million debut fund launched in 2021.
At first glance, it might seem like the company benefits from VC interest in defense technology. But J2 has no interest in positioning itself as a defense technology investor.
“Our portfolio is adjacent to national security, but not defense-focused,” said Alexander Hastrick, J2’s managing partner. The firm does not invest in technologies that help protect critical national infrastructure or deter attacks, such as drones, robots or surveillance technology.
Instead, J2 supports companies that produce products that help maintain the well-being and health of the approximately 3 million people employed by the U.S. military.
Hastrick said the DoD has historically adopted new technologies before they became popular with civilians. And it’s not just the Internet. The Internet was partly developed by the military.
“The Department of Veterans Affairs was the first to use telemedicine,” Hastrick said. “They were also the first to implement electronic health records.”
J2's healthcare investments include Tasso, a maker of needle-free blood collection technology, and Lumia Health, a wearable device that measures blood flow to the brain.
The company also supports cybersecurity, infrastructure and advanced computing startups such as Femtosense, which is developing energy-efficient AI chips for smart devices.
J2 supports pre-seed stage companies through Series A and writes checks ranging from $1 million to $5 million. The company's limited partners include JP Morgan and the New Mexico State Investment Council.
Hastrick served as a military intelligence officer in the U.S. Army Reserves and deployed to Iraq and Afghanistan. Prior to starting J2, he was an investor in the Defense Innovation Unit.
