J2 Ventures, a agency led primarily by US army veterans, introduced Thursday that it has raised a second fund of $150 million. The Boston agency invests in startups whose merchandise are bought by civilians and the US Division of Protection.
Whereas many new VCs wrestle to boost a second fund, the most recent J2 automobile greater than doubles its debut fund of $67.5 million beginning in 2021.
At first look, the agency could seem like benefiting from the rising curiosity of enterprise capitalists in protection know-how. However J2 is just not focused on positioning itself as a protection know-how investor.
“Our portfolio is nationwide security-related, however not defense-oriented,” mentioned Alexander Harstrick, managing companion of J2. The agency doesn’t put money into applied sciences that defend important nationwide infrastructure or assist deter assaults, resembling drones, robotics or surveillance know-how.
As a substitute, J2 helps corporations whose merchandise assist assist the well-being and well being of the almost 3 million individuals who serve within the U.S. army.
Harstrick mentioned the Division of Protection (DoD) has traditionally adopted new applied sciences earlier than they turned common with civilians. And it isn’t simply in regards to the Web, which was partially developed by the army.
“The Division of Veterans Affairs was the primary to make use of telemedicine,” Harstrick mentioned. “They have been additionally the primary to introduce digital medical information.”
J2’s healthcare investments embody Tasso, a maker of needle-free blood sampling tools, and Lumia Well being, a wearable gadget that measures blood movement within the mind.
The agency additionally backs cybersecurity, infrastructure and superior computing startups resembling Femtosense, a developer of energy-efficient AI chips for good units.
J2 helps pre-seed to Sequence A corporations and writes checks starting from $1 million to $5 million. The agency’s restricted companions embody JPMorgan and the New Mexico Funding Board.
Harstrick served as a army intelligence officer within the U.S. Military Reserve and was deployed to Iraq and Afghanistan. Earlier than founding J2, he was an investor within the Protection Innovation Unit.
