J2 Ventures, a agency led largely by U.S. navy veterans, introduced on Thursday that it has raised a $150 million second fund. The Boston-based agency invests in startups whose merchandise are bought by civilians and the U.S. Division of Protection.
Whereas many rising VCs are struggling to boost second funds, J2’s newest car is greater than double its $67.5 million debut fund from 2021.
At first blush, the agency might appear to be benefiting from VCs’ rising curiosity in protection tech. However J2 has no real interest in positioning itself as a protection tech investor.
“Our portfolio is national-security adjoining, however not defense-focused,” mentioned Alexander Harstrick, J2’s managing companion. The agency doesn’t put money into applied sciences that shield vital nationwide infrastructure or assist deter assaults, reminiscent of drones, robotics, or surveillance tech.
As an alternative, J2 backs firms whose merchandise assist keep the well-being and healthcare of practically 3 million folks employed by the U.S. navy.
Harstrick mentioned that the Division of Protection (DoD) has traditionally adopted new applied sciences earlier than they turned common with civilians. And it’s not simply the web, which was partially developed by the navy.
“The Division of Veterans Affairs was the primary to make use of telemedicine,” Harstrick mentioned. “They had been additionally the primary to undertake digital well being data.”
J2’s healthcare investments embrace Tasso, a maker of needle-free blood draw tech, and Lumia Well being, a wearable gadget that measures blood circulate to the mind.
The agency additionally backs cybersecurity, infrastructure, and superior computing startups like Femtosense, a developer of energy-efficient AI chips for sensible units.
J2 backs firms on the pre-seed stage to Collection A and writes checks that vary from $1 million to $5 million. The agency’s restricted companions embrace JPMorgan and New Mexico State Funding Council.
Harstrick served as a navy intelligence officer within the U.S. Military Reserve and was deployed in Iraq and Afghanistan. Earlier than beginning J2, he was an investor within the Protection Innovation Unit.
