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Doximity’s S-1 may explain why healthcare exits are heating up – TechCrunch


There was a time when that column was more than an endless series of IPO coverage. Then the unicorn liquidity cycle kicked in and since then it has been a long series of public offerings. This morning is no exception.

Doximity filed a case to be made public earlier today. You probably haven’t heard of the company, as it exists in the modestly obscure world of telehealth. But it’s still a venture-backed startup that has raised more than $ 80 million from investors like Emergence, InterWest Partners, Morgenthaler Ventures and Threshold, according to data from Crunchbase.

Notably, Doximity hasn’t raised funds since 2014, a year in which it pulled in just under $ 82 million for a valuation of $ 355 million, per PitchBook data. How did he manage not to raise for so long? By generating a lot of money and profit over the years. It turns out that healthcare technology communications can be a lucrative business.


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Doximity is a social network that allows doctors to talk to each other while complying with HIPAA, a federal law that promotes medical privacy. The network, originally defined as a LinkedIn for healthcare professionals, offers physicians a Rolodex for specialists, a news feed for healthcare updates, a communication tool for talking to patients and a job search tool.

In 2017, Doximity claimed to have reached 70% of all American physicians, or more than 800,000 licensed professionals.

This is the second time CEO Jeff Tangney has taken a healthcare technology company to the stock market after launching his previous medical software startup, Epocrates, in 2011.

Let’s talk briefly about the broader health tech exit market, then take a look at Doximity’s IPO case and see how the company managed to avoid the dilution of the private market for seven years – and what the company can be worth.

Healthtech outputs

The global digital health market is estimated to reach $ 221 billion by 2026, underscoring the scale of opportunity the sector can present to venture capitalists. But investors don’t just pay attention to estimates; they’re seeing a number of digital health (read: liquidity) releases that heat up their checkbooks.

CB Insights estimates that there were 79 healthcare IPOs and M&A transactions in the first quarter of 2021 alone, a 60% increase from the previous quarter. Another report says there were 145 digital health business acquisitions in 2020, up from 113 in 2019.

While continuing to grow, it’s fair to say that these numbers describe a healthy exit environment.

The list of offers on the market is quick. Earlier this year, Everlywell, founded in 2015, acquired two healthcare companies to expand its digital health service and distribution. Last week, Modern Fertility was bought by Ro for at least $ 225 million as part of a majority deal. Before you start complaining that it’s not an IPO, think about this: A company less than four years old has just been bought for a quarter of a billion dollars by another company less. four years.



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