J2 Ventures raises $150mn for ‘dual-use’ technologies

• Boston-based J2 Ventures has hit a hard cap of $150mn for its J2 Ventures Argonne Fund, which will target technology that is critical for the private sector and US national security interests.

• The firm was founded in 2020 to finance start-ups and is led mostly by US military veterans. It raised $68mn for its first fund, which closed in 2021.

• It specializes in advanced computing, cybersecurity, telecoms/infrastructure, and healthcare start-ups, helping them win funding and contracts from the military and other branches of government, which it says have minimal correlation to traditional markets.

• Recent investments include Apex Technology, a satellite manufacturer (May 2024) and Redcoat AI, a cybersecurity company (March 2024).

July 5, 2024 (Preqin News) – US-based venture capital (VC) fund managers have raised a total of $35.4bn across 298 fund closes so far this year. This is well below the run rate in the record year of 2021, when 1,757 funds raised $154.8bn, but points to the beginning of a rebound, with the half-year total of funds raised 62% of 2023’s full-year total.

The average time spent fundraising by US VC managers has been rising, from 19 months in 2021 to 20 in 2022, 22 in 2023, and 23 months for funds that have held a final close this year. The average percentage of target size has also dipped below 100% for the first time since 2019, though it should be noted that for the decade from 2010, the average only rose above 100% three times.

Venture capital fundraising by US-based managers, 2018–2024 YTD

_{Source: Preqin Pro. Data as of July 2024}

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}