The Vertical Group logo

The Vertical Group

North America, New Jersey, United States, Basking Ridge

Description

The Vertical Group is a highly specialized venture capital firm based in Basking Ridge, New Jersey, with a profound focus on the medical technology, biotechnology, and diagnostic sectors. Established in 1988, the firm has accumulated over three decades of experience, positioning itself as a seasoned investor in the complex and rapidly evolving healthcare industry. Their deep domain expertise is a cornerstone of their value proposition, enabling them to offer not just financial capital but also strategic guidance, leveraging an extensive network and a nuanced understanding of regulatory pathways and market dynamics within life sciences.

The firm primarily targets early to growth-stage companies that are developing innovative medical devices, diagnostics, and biotechnologies. With over $1 billion in capital under management across various funds, The Vertical Group demonstrates substantial financial capacity to support its portfolio companies. Their typical initial investment ranges from $5 million to $20 million, indicating a preference for significant capital injections into promising ventures that require substantial funding to navigate clinical development, regulatory approvals, and eventual market commercialization. This strategic approach allows them to partner with companies through critical phases of their growth.

The Vertical Group boasts a strong track record, having made approximately 56 investments and achieving 26 exits since its inception. This consistent performance underscores their ability to identify high-potential opportunities and generate favorable returns for their limited partners through successful acquisitions and public offerings. Their most recent fund, Vertical Healthcare V, closed in 2017 with $200 million, reinforcing their ongoing commitment and capacity to invest in the cutting-edge of healthcare innovation. The firm's long-standing presence and specialized focus make it a pivotal partner for entrepreneurs seeking both capital and expert guidance in the highly specialized fields of medical advancement.

Investor Profile

The Vertical Group has backed more than 69 startups, with 2 new investments in the last 12 months alone. The firm has led 8 rounds, about 12% of its total and boasts 22 exits across its portfolio.

Investment Focus Highlights

  • Concentrates on Series B, Series C, Series Unknown rounds (top funding stages).
  • Majority of deals are located in United States, Israel.
  • Strong thematic focus on Health Care, Medical Device, Medical.
  • Typical check size: $5M – $20M.

Stage Focus

  • Series B (22%)
  • Series C (17%)
  • Series Unknown (14%)
  • Series A (13%)
  • Series D (9%)
  • Private Equity (6%)
  • Series F (6%)
  • Seed (6%)
  • Series E (4%)
  • Post Ipo Equity (1%)

Country Focus

  • United States (99%)
  • Israel (1%)

Industry Focus

  • Health Care
  • Medical Device
  • Medical
  • Biotechnology
  • Therapeutics
  • Pharmaceutical
  • Manufacturing
  • Biopharma
  • Life Science
  • Hospital
circle-line
FAQ

Frequently Asked Questions

Learn who this investor regularly partners with—both firms and angels—and explore their latest activity.

Who does The Vertical Group frequently co-invest with?

DeNovo Ventures
North America, California, United States, Saratoga
Co-Investments: 7
Domain Associates
North America, California, United States, San Diego
Co-Investments: 6
Norwest Venture Partners
North America, California, United States, Palo Alto
Co-Investments: 4
Johnson & Johnson Development Corporation
North America, New Jersey, United States, New Brunswick
Co-Investments: 3
Warburg Pincus
Europe, Madrid, Spain, Boadilla Del Monte
Co-Investments: 13
U.S. Venture Partners
North America, California, United States, Menlo Park
Co-Investments: 18
Polaris Partners
North America, Massachusetts, United States, Boston
Co-Investments: 3
Delphi Ventures
North America, California, United States, San Mateo
Co-Investments: 5
Morgenthaler Ventures
North America, California, United States, Menlo Park
Co-Investments: 6
Latterell Venture Partners
North America, California, United States, San Francisco
Co-Investments: 15

Which angels does The Vertical Group often collaborate with?

JR
Europe, England, United Kingdom, London
Shared Deals: 2
JS
North America, California, United States, San Francisco
Shared Deals: 1
AO
North America, New York, United States, Woodmere
Shared Deals: 1
TJ
North America, California, United States, Mountain View
Shared Deals: 1
GM
North America, Texas, United States, Houston
Shared Deals: 1
AP
North America, New Jersey, United States, Hackensack
Shared Deals: 1

What are some of recent deals done by The Vertical Group?

MicroTransponder

Dallas, Texas, United States

MicroTransponder is a medical device company that develops and commercializes neurostimulation devices to treat neurological diseases.

Health CareMedicalMedical Device
Series FMar 12, 2025
Amount Raised: $65,000,000
Route 92 Medical

San Mateo, California, United States

Route 92 Medical is a medical device company developing a catheter to treat stroke.

Health CareHospitalMedical
Series FSep 23, 2024
Amount Raised: $50,000,000
Route 92 Medical

San Mateo, California, United States

Route 92 Medical is a medical device company developing a catheter to treat stroke.

Health CareHospitalMedical
Series FNov 16, 2023
Amount Raised: $31,000,000
Luminopia

Cambridge, Massachusetts, United States

Luminopia develops a new class of treatments for significant neuro-visual disorders.

Health CareMedicalVirtual Reality
Series AJun 27, 2023
Amount Raised: $16,000,000
Luminopia

Cambridge, Massachusetts, United States

Luminopia develops a new class of treatments for significant neuro-visual disorders.

Health CareMedicalVirtual Reality
SeedNov 11, 2022
Amount Raised: $5,700,000
MicroTransponder

Dallas, Texas, United States

MicroTransponder is a medical device company that develops and commercializes neurostimulation devices to treat neurological diseases.

Health CareManufacturingMedicalMedical Device
Series EJun 20, 2022
Amount Raised: $73,000,000
Carlsmed

Carlsbad, California, United States

The company manufactures and sells the aprevo™ digital-to-device 3-D printed implant system for lumbar spine surgery.

Health CareManufacturingMedical Device
Series BApr 19, 2022
Amount Raised: $30,000,000
Route 92 Medical

San Mateo, California, United States

Route 92 Medical is a medical device company developing a catheter to treat stroke.

Health CareHospitalMedical
Series EDec 14, 2021
Amount Raised: $56,000,000
Carlsmed

Carlsbad, California, United States

The company manufactures and sells the aprevo™ digital-to-device 3-D printed implant system for lumbar spine surgery.

Health CareManufacturingMedical Device
Series ADec 16, 2020
Amount Raised: $10,000,000
Biorez

New Haven, Connecticut, United States

Biorez is a medicine company focused on the development of tendon and ligament healing.

BiotechnologyHealth CareMedical DeviceSports
SeedSep 14, 2020
Amount Raised: $3,500,000