The ‘LinkedIn for Doctors’ just went public and it’s worth $10B

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From The Hustle

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 two trading days, the company saw its market value ~2x to ~$10B.

Doximity was founded in 2009

The initial team included two tech veterans (Jeff Tangney, Shari Buck) and a doctor (Nate Gross). [The platform was launched in the spring of 2011. About 10% of American doctors were members by 2013, making it one of the country's largest networks for healthcare professionals. By the start of 2014, 40% of doctors in the U.S. have joined. Up to 2/3 of American physicians are represented among the company's 1 million members, according to an announcement made in 2018. Since then, the number of registered users in Doximity has doubled, including more than 80% of doctors and more than half of physician assistants and nurse practitioners. 

So, why Doximity? While LinkedIn has helped millions of people with different professions to get jobs, doctors might need something more specific and narrowly focused. They should be able to see a full list of relevant supporting documents on one’s profile to evaluate their qualifications. Maybe, soon Doximity will need its own alternative for the LinkedIn makeover service to make the platform even more user-friendly and up-to-date. It is much easier to find the practitioner you need when his or her data is clearly laid out, well-structured, and chronologically arranged.  Also, it is convenient for networking and arranging various professional development within the doctors' community.]

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.