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The Vertical Group is a venture capital firm founded in 1988, specializing in medical technology and biotechnology. Headquartered in Basking Ridge, New Jersey, the firm also operates an office in San Mateo, California. As the successor to the venture capital division of F. Eberstadt & Co., The Vertical Group has built a legacy of over 40 years in the medical technology industry. Its principals have extensive backgrounds as founders, early-stage investors, and executives in numerous successful healthcare companies.
Currently, The Vertical Group manages a diverse portfolio focused on healthcare innovation, with a particular emphasis on medical devices, diagnostics, and digital health solutions. The firm has established itself as a key player in the venture capital landscape, leveraging its deep operational and investing expertise to support companies navigating the complexities of healthcare product development and commercialization. The firm’s commitment to improving patient outcomes while ensuring cost-effectiveness is central to its investment strategy.
The Vertical Group primarily invests in the healthcare sector, with a strong focus on medical technology and biotechnology. The firm engages in early-stage angel financings as well as both early and later-stage venture capital investments. Investment sizes typically range from $250,000 to $5,000,000, depending on the nature of the transaction. The firm emphasizes the importance of cost-effectiveness alongside improved patient outcomes in its investment thesis.
Geographically, The Vertical Group concentrates its efforts in North America, although it maintains selected international exposure in the medtech space. The firm seeks to partner with innovative companies that demonstrate a clear path to market and regulatory compliance. Their investment strategy is informed by a deep understanding of the healthcare landscape, allowing them to identify opportunities that align with their expertise in regulated product development and commercialization.
The Vertical Group has a notable portfolio that includes several innovative companies in the healthcare sector. Key portfolio companies include:
Historic investments include:
Richard B. Emmitt - General Partner. Richard has extensive experience in healthcare investing, venture capital, and investment banking. He has served on boards for companies such as American Medical Systems and BioSET.
John E. Runnells - General Partner. John has a background in law and asset management, with experience in regulatory affairs and special-situation healthcare investing. He joined The Vertical Group in 1992 after co-founding Paddington Partners.
Jack W. Lasersohn - General Partner. Jack has been a healthcare VC investor since the early 1980s and was a former corporate attorney at Cravath, Swaine & Moore. He has board experience across various healthcare companies, including Silk Road Medical and Kyphon.
Tony M. Chou, MD - General Partner. Tony is a physician and interventional cardiologist with a background as a former executive at Abbott Vascular. He has served on boards for companies like Route 92 Medical and Omada Health.
John A. Slattery - Chief Financial Officer. John oversees the financial operations of The Vertical Group and has a strong background in finance and investment management.
To pitch The Vertical Group, founders should use the contact form available at https://www.vertical-group.com/contact-us.html or email info@vertical-group.com. It is advisable to include a clear executive summary, details about the team, and information on the product or service being offered. Founders should also outline their market strategy and financial projections.
Response times can vary, but founders should expect a rolling application process. Warm introductions are not strictly necessary, but they can enhance the chances of a favorable review.
In April 2026, The Vertical Group participated as a returning investor in a $50 million growth financing round for Route 92 Medical, a neurovascular intervention company. This investment highlights the firm's ongoing commitment to supporting innovative healthcare solutions.
In September 2024, The Vertical Group was noted for its involvement in the Series A financing of Outset Medical, a company focused on dialysis technology. Tony Chou's role on the board further emphasizes the firm's active engagement in its portfolio companies.
What are The Vertical Group's investment criteria?
The Vertical Group focuses on investments in the healthcare sector, specifically in medical technology and biotechnology. They look for companies that demonstrate cost-effectiveness and improved patient outcomes.
How can I pitch to The Vertical Group?
Founders can pitch to The Vertical Group by visiting their contact page at https://www.vertical-group.com/contact-us.html or by emailing info@vertical-group.com. They accept pitches through email and their website.
What stages does The Vertical Group invest in?
The Vertical Group invests in various stages, including angel, seed, Series A, and growth equity. They are open to early-stage and later-stage venture capital financings.
What is the typical check size for investments?
The firm typically invests between $250,000 and $5,000,000, depending on the specific needs of the company and the stage of investment.
What makes The Vertical Group different from other VCs?
The Vertical Group's deep expertise in medical technology and biotechnology, combined with over 40 years of experience in the healthcare industry, allows them to provide valuable insights and operational support to their portfolio companies.
What is the geographic focus of The Vertical Group?
The Vertical Group primarily focuses on investments in North America, although they maintain selected international exposure in the medtech sector.
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