The Vertical Group
The Vertical Group is a New Jersey-based venture capital firm focused exclusively on medical technology and biotechnology, deploying $250K–$5M checks across seed through later-stage rounds from Vertical Fund I and II.
- Company typePrivate
- Founded1988
- HeadquartersBasking Ridge, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What The Vertical Group does
The Vertical Group is a New Jersey-based venture capital firm founded in 1988 as the successor to the venture capital division of F. Eberstadt & Co., with a 40+ year exclusive focus on medical technology and biotechnology investments. The firm is structured as a limited partnership (The Vertical Group, L.P.) and manages at least two venture funds — Vertical Fund I, L.P. and Vertical Fund II, L.P. — deploying capital in ticket sizes ranging from $250,000 to $5,000,000 across seed, Series A, and later-stage rounds. Its four General Partners (Richard B. Emmitt, John E. Runnells, Jack W. Lasersohn, and Tony M. Chou, MD) collectively bring expertise spanning investment research, law, regulatory affairs, interventional cardiology, and medical device executive experience; partners hold board seats across the portfolio and, in Tony Chou's case, also serve as founder/CEO of Route 92 Medical.
The firm has generated several multi-billion-dollar exits from its portfolio, including Kyphon ($3.9B acquisition by Medtronic in 2007), ev3 ($2.6B by Covidien in 2010), Ventana Medical Systems ($3.9B by Roche), and Lifecell ($1.8B by KCI in 2008). The firm's go-to-market relies entirely on relationship-driven deal sourcing through the partners' network, NVCA involvement (the firm was among founders of the NVCA Medical Industry Group), and direct board-level engagement with portfolio companies. Revenue is generated through the standard VC fund model: recurring management fees on committed capital (typically 1.5–2% annually for the industry) plus carried interest on successful exits, with the firm headquartered in Basking Ridge, NJ and maintaining a second office in San Mateo, CA.
The Vertical Group firmographics
Firmographics- Name
- The Vertical Group
- Legal name
- The Vertical Group, L.P.
- Website
- http://www.vertical-group.com
- Company type
- Private
- Founded year
- 1988
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- The Vertical Group is a New Jersey-based venture capital firm focused exclusively on medical technology and biotechnology, deploying $250K–$5M checks across seed through later-stage rounds from Vertical Fund I and II.
- Ownership category
- akta.pro rank
The Vertical Group industry classification
Industry- Product category
- Venture Capital (Healthcare and Biotechnology)
- NAICS
- Portfolio Management and Investment Advice (523940), Other Financial Investment Activities (5239)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Sector-Focused Venture Capital (Vertical Specialists) (FSANAAAD)
Keywords
Where The Vertical Group is headquartered
LocationHeadquarters
- HQ city
- Basking Ridge
- HQ country
- United States
- HQ region
- North America
Offices3 records
Markets served
The Vertical Group business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Others
Revenue model
- Fund Management - Management Fees: The firm manages venture capital funds (Vertical Fund I, L.P., Vertical Fund II, L.P.) and charges management fees on committed capital.
- Carried Interest: The firm earns carried interest (typically 20% of profits) from successful portfolio company exits, aligning GP and LP incentives.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Multi-year contract | Investment size ranging from $250,000 to $5,000,000 per transaction |
Go-to-market motion1 record
Distribution channels1 record
Marketing channels2 records
The Vertical Group product offering
Product offeringCore offering
The Vertical Group is a venture capital firm that invests in early-stage and later-stage medical technology and biotechnology companies, deploying between $250,000 and $5,000,000 per transaction through fund vehicles (Vertical Fund I, L.P. and Vertical Fund II, L.P.). Partners take board seats and contribute operating expertise in R&D, regulatory affairs, sales and marketing, and transaction structuring to support portfolio company growth and exits.
Product overview
The Vertical Group is a venture capital firm, not a product company. It does not offer a unified platform or product suite. The firm provides investment services in the medical technology and biotechnology sectors, participating in venture financing rounds for portfolio companies. The firm's investment approach leverages the medical device industry knowledge and experience of its general partners.
Differentiator
Problem solved
Functional benefit
Products and services
- The Vertical Group Investment Services Venture capital investment services delivered through Limited Partnership funds (Vertical Fund I, L.P. and Vertical Fund II, L.P.), investing $250,000 to $5,000,000 per transaction in early-stage angel financings and early and later-stage venture capital financings of medical technology and biotechnology companies, with partners providing operating support in R&D, regulatory affairs, sales and marketing and transaction structuring.
Companies that use The Vertical Group
Customer profileSegments2 records
Ideal customer profiles2 records
The Vertical Group technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
The Vertical Group partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Trace MedicalcoreTrace Medical signed a long-term distribution agreement with Outset Medical to rent the Tablo Hemodialysis System to HME providers. Trace Medical's national distribution platform serves approximately 30 million patients annually.
Scale indicators4 records
Recent moves6 records
Expansion highlights4 records
The Vertical Group competitors and assessment
Company assessmentDirect peers
- OrbiMed Advisors: One of the largest healthcare-dedicated investment firms globally, covering medtech, biotech, and diagnostics across all stages. OrbiMed is the closest direct peer to The Vertical Group's specialist medtech/biotech focus, with overlapping exit sizes and co-investment profiles.
- Frazier Healthcare Partners: Healthcare-focused venture and growth firm investing across biopharma and medtech from seed through public stages. Frazier is highly comparable as a long-tenured, sector-specialist firm with similar fund structure and check-size ranges.
- Domain Associates: Healthcare-only venture firm investing in therapeutics, medical devices, and diagnostics. Domain's exclusive healthcare mandate and stage range closely mirror The Vertical Group's approach.
- Longitude Capital: Venture and growth equity firm exclusively focused on life sciences, including medical devices and biotech. Comparable fund size, stage focus, and sector concentration to The Vertical Group.
- Sante Ventures: Healthcare and medical technology-focused venture capital firm investing across medtech, biotech, and healthcare services. Sante Ventures is comparable as a sector-specialist with overlapping device and biotech portfolio themes.
- SV Health Investors: Healthcare-only venture and growth firm with biotech and medtech strategies including a dedicated medical devices franchise. SV's sector specialization and stage breadth make it a strong comparability reference.
Emerging players
- Accelmed: Medical-device-focused private equity and venture firm investing in lower-middle-market healthcare technology companies. Comparable in its medtech-only thesis, though typically later-stage than The Vertical Group's seed/early focus.
- Baird Capital (Healthcare): Mid-market healthcare growth equity practice investing in medical devices, healthcare services, and life sciences. Comparable as a healthcare-only investor with growth-stage medtech exposure.
Broad incumbents
- NEA (New Enterprise Associates): Large multi-stage venture firm with a significant healthcare practice that has co-invested alongside The Vertical Group (e.g., Omada Health Series A). NEA is a broader incumbent, but its healthcare team competes head-to-head on medtech deals.
- Warburg Pincus: Global growth investor with a deep healthcare practice that has co-invested with The Vertical Group (e.g., Outset Medical, Tornier). Warburg is a broader incumbent but a frequent medtech co-investor.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks5 records
Key highlights6 records
Customer concentration
The Vertical Group social profiles
Digital presenceThe Vertical Group financial estimates
Financial estimateRevenue estimate
Valuation estimate
The Vertical Group leadership team
Management profileNumber of profiles
Profiles4 records
The Vertical Group funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
The Vertical Group M&A and investment
M&A and investmentM&A
Investments74 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about The Vertical Group
What does The Vertical Group do?
The Vertical Group is a venture capital firm that invests in early-stage and later-stage medical technology and biotechnology companies, deploying between $250,000 and $5,000,000 per transaction through fund vehicles (Vertical Fund I, L.P. and Vertical Fund II, L.P.). Partners take board seats and contribute operating expertise in R&D, regulatory affairs, sales and marketing, and transaction structuring to support portfolio company growth and exits.
Is The Vertical Group a public or private company?
The Vertical Group is a private company. It is classified as management employee owned and is currently operating.
When was The Vertical Group founded?
The Vertical Group was founded in 1988. It employs 11 to 50 people.
Where is The Vertical Group based?
The Vertical Group is headquartered in Basking Ridge, United States, in the North America region.
How does The Vertical Group make money?
Two revenue lines are on record. Fund Management - Management Fees are the primary driver. The others are carried Interest.
Who are The Vertical Group's main competitors?
Direct peers on record are OrbiMed Advisors, Frazier Healthcare Partners, Domain Associates, Longitude Capital, Sante Ventures and SV Health Investors. Emerging players are Accelmed and Baird Capital (Healthcare). Broad incumbents are NEA (New Enterprise Associates) and Warburg Pincus.
Does The Vertical Group have an API?
No public API is recorded for The Vertical Group.
What industry is The Vertical Group in?
The Vertical Group's product category is Venture Capital (Healthcare and Biotechnology). Its primary akta.pro industry code is FSANAAAD, Sector-Focused Venture Capital (Vertical Specialists). Its NAICS code is 523940 and its SIC code is 6282.