J2 Ventures, specializing in military healthcare, secures $150M for its second fund

J2 Ventures, a venture capital firm primarily led by U.S. military veterans, announced on Thursday that it has successfully raised a $150 million second fund. The Boston-based firm focuses on investing in startups whose products are used by both civilians and the U.S. Department of Defense (DoD). This latest fund is more than double the size of J2’s inaugural $67.5 million fund raised in 2021.

Despite the growing interest in defense technology among venture capitalists, J2 Ventures chooses to position itself differently. “Our portfolio is national-security adjacent, but not defense-focused,” said Alexander Harstrick, J2’s managing partner. The firm avoids investing in technologies directly related to defense, such as drones, robotics, or surveillance tech, which are aimed at protecting critical national infrastructure or deterring attacks.

Instead, J2 Ventures supports companies whose products enhance the well-being and healthcare of the nearly 3 million individuals employed by the U.S. military. Harstrick highlighted that the DoD has historically been an early adopter of new technologies that later gain widespread civilian use. For instance, the Department of Veterans Affairs was a pioneer in telemedicine and the adoption of electronic health records.

This approach aligns with J2’s mission to back innovative companies that contribute to the overall quality of life and operational efficiency within the military, focusing on areas that bridge civilian and military applications rather than purely defense-related technologies.