The tech industry loves throwing around the phrase “Uber for X” as a quick way to explain on-demand startup ideas.
Turns out “LinkedIn for X” may have been a better frame. Doximity — a “LinkedIn for doctors” — went public last Thursday…
… and in 2 trading days, the company saw its market value ~2x to ~$10B.
Doximity was founded in 2009
The initial team included 2 tech veterans (Jeff Tangney, Shari Buck) and a doctor (Nate Gross).
Doximity set out with the goal of fixing the medical community’s antiquated communication methods. Tangney, who is CEO, tells CNBC that 80% of communication is done via snail mail and fax.
The solution: build a medical social network
In the decade since launch, Doximity has 1.8m medical professionals in the US (including 80%+ of physicians) on its platform.
While building out the user base, the startup also created a secure way for doctors to share information with patients and other doctors.
Like LinkedIn, Doximity has a 2-pronged revenue approach:
- Ads: Drugmakers market treatments to very niche audiences, while health systems “promote content” to doctors.
- Recruiting: Hospitals and health facilities use it to fill open roles.
Doximity’s sales hit $200m+ in 2020
Future revenue growth could be capped by the fact that Doximity already has most of America’s doctors on the platform.
Tangney says opportunities still exist to upsell services, and the health tech firm is making a play for the $4.3B telehealth opportunity.
One thing is for sure: Doximity knows its audience. It allocated 15% of its IPO to doctors on the platform. Thousands participated and saw a combined $91m investment increase to $195m after the stock pop.
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