
The Vertical Group
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
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