Military Veterans Launch $150 Million Fund to Invest in Healthcare Startups

Military Veterans Invest in Healthcare Startups with $150 Million Fund

J2 Ventures, a firm led by U.S. military veterans, has raised a $150 million second fund to invest in startups that cater to both civilians and the U.S. Department of Defense (DoD). This fund is more than double their initial $67.5 million fund from 2021, highlighting their strong performance and growing investor confidence.

While the focus might seem to be on defense tech, J2 emphasizes that their portfolio is "national-security adjacent" and not defense-focused. They invest in companies that improve the well-being and healthcare of the nearly 3 million people employed by the U.S. military. This includes startups like Tasso, a maker of needle-free blood draw tech, and Lumia Health, a wearable device that measures blood flow to the brain.

J2 recognizes that the DoD often adopts new technologies before they become widely popular with civilians, pointing to the early adoption of telemedicine and electronic health records by the Department of Veterans Affairs.

The firm backs companies at the pre-seed stage to Series A and invests $1 million to $5 million per company. Their limited partners include JPMorgan and New Mexico State Investment Council.

Alexander Harstrick, J2’s managing partner, is a veteran of the U.S. Army Reserve with experience in military intelligence. Prior to founding J2, he was an investor at the Defense Innovation Unit.