What Is Doximity?
Medical practitioners may use Doximity, a mashup of ‘doctors’ and ‘proximity,’ to communicate with each other and potential patients.
Medical practitioners may interact and exchange personal information with patients and colleagues while being HIPAA-compliant using Doximity, which has been termed the “LinkedIn for physicians.”
Like any other social network, Doximity provides a customized newsfeed that focuses on healthcare-related stories and events. Users have the option to share, like, and comment on other people’s posts.
Additional information may be added by doctors and other medical professionals, such as practice locations and contact information. As a bonus, they may provide their resume to demonstrate their abilities.
It is possible to transmit secure faxes and make video calls to patients using the app’s secure messaging feature. In addition to signing, date, and annotating papers, the platform also provides the ability to collaborate with others.
There are more than 4,000 residency programs in the United States that medical professionals may look for employment or read evaluations on.
Doximity is accessible through the company’s website and a mobile or tablet app that may be downloaded (available on Android and iOS devices).
The history of Doximity
Doximity was started in 2010 by Jeffrey Tangney, Shari Buck, and Nate Gross in San Francisco, California.
It’s safe to say Tangney is the most seasoned entrepreneur in the group. But first, a few introductions.
Tangney graduated from the University of Wisconsin-Madison in 1993 with a degree in mathematics. After graduating, he worked for four years as a software engineer before deciding to go back to school and get an MBA at Stanford University.
In the late 1990s, he joined Goldman Sachs’ healthcare investment banking office as an investment banker, starting his career in healthcare. Richard Fiedotin, a professional physician, was his roommate in New York City.
The two met in their cramped New York City apartment to come up with new business ideas in the midst of the dot-cot boom. A prototype for a Palm Pilot application was created, which would communicate vital information to physicians through a mobile phone.
In Stanford’s Graduate School of Business, Tangney and Fiedotin met another physician, Tom Lee, who helped them develop their business plan. Epocrates was born in 1999 after they became fast friends and decided to start a company together.
Several venture investors gave them $40 million over the following two years, and the team was instructed to employ as quickly as possible.
Even though business confidence was at a low ebb after the dot-com boom and 9/11 terrorist attacks, the owners had to lay off a significant number of employees.
Tangney, despite the departure of his co-founders, stayed on and helped the company recover. When the iPhone was originally introduced in 2007, Epocrates was one of the first five applications that could be downloaded.
He made an attempt to go public with the firm in 2008, but it was unsuccessful. However, the great financial crisis again curtailed his intentions, and Epocrates was obliged to withdraw its application to go public.
In 2009, Tangney made the decision to retire from the firm. On the heels of a 2011 IPO, Epocrates was bought by AthenaHealth for $293 million in 2013. Tangney, on the other hand, was already planning his next project.
One of Epocrates’ most prominent investors, Interwest Partners, had Tangney as an entrepreneur in residence shortly after his departure from Epocrates. Tangney, who had worked with Buck at Epocrates, as well as Emory University-educated Dr. Nate Gross, joined him on the trip.
Doximity, a mobile-focused private social network, was launched by the three in October 2010 following months of preparation. Tangney’s Epocrates co-founders Fiedotin and Lee served as consultants to the company during those early years.
Within a few months of its introduction, in March 2011, Doximity raised $10.8 million in its first round of public fundraising (InterWest Partners likely contributed the seed cash for the app’s development).
As of the end of 2011, Doximity has managed to sign up over 30,000 physicians, or around 5% of all doctors in the United States of America. A multi-year head start on the fledgling firm, Doximity was competing against competitors like Sermo that offered comparable messaging functions at the time.
With the launch of its Newsfeed feature in early 2012, Doximity took a huge step toward becoming the social network it is today. Stanford University Medical Center Alumni Association (SUMCAA) members will be able to identify and connect with one other using a separate app.
An additional $17 million was raised in September 2012 as a result of the company’s steady expansion. Since then, it has managed to bring in one out of every seven US doctors. Doximity’s fundraising round was accompanied by the addition of LinkedIn co-founder Konstantin Guericke to its board of directors.
Over 125,000 doctors have signed up for the site by the start of 2013. A large part of Doximity’s development may be credited to physicians and medical students advocating that other members of the medical community join Doximity.
Doximity was also launched with the help of thought leaders from prestigious medical institutions such as Stanford, Columbia, and others. Finally, stricter privacy rules, which Doximity strove to adhere to from the beginning, also enticed many to join its platform.
To make it easier for clinicians to utilize Doximity while interacting with patients, Doximity released its first iPad app in May 2013. To this day, Doximity’s features are still in use, such as its teaching platform (developed in partnership with Cleveland Clinic), digital fax line that is HIPAA-compliant, and developer API.
Finally beginning to earn money as a recruiting tool for medical professionals, Doximity rounded off the year in style (more on that in the next section). Eventually, like any other social media network, the growth started to snowball and take on a life of its own. At the beginning of 2014, Doximity has more than doubled its user base to more than 250,000 users in only one year (equal to about 40 percent of all doctors in the U.S.).
As a result of the company’s rapid expansion, it received yet another round of finance. When Doximity received $54 million in a Series C round in April 2014, the company was valued at $400 million. Doximity was able to contact more than half of all doctors in the United States before the year’s conclusion.
Doximity’s leadership team made a conscious choice to limit the company’s public visibility during the next years. To a great extent, this may be attributed to the fact that the firm began to turn a profit in 2014. The company was able to recruit new investors on its own, without the help of extra press attention. However, it was subsequently found that it never used the money raised in its Series C round of funding.
The Doximity Dialer app (which was subsequently integrated into the main Doximity app) was released by Doximity in January 2017 to allow physicians to make secure calls to their patients. In March, the group reported that it had surpassed 800,000 members, which is around 70% of all US doctors, two months earlier. Once the company had overtaken its rivals, it became the market leader.
Doximity achieved its first million members in February 2018 after almost eight years in operation. Doximity continues to expand over the next months and years via a variety of collaborations and new functionality announcements.
When the coronavirus epidemic hit the United States in 2020, it gave the platform a huge boost. As a consequence, Doximity developed Doximity Dialer Video, a telemedicine service that lets clinicians video chat with their patients.
Additionally, Doximity will acquire THMED, a healthcare staffing organization, in the summer of 2020 for an unknown price. Doximity stayed focused on increasing its telehealth offerings in order to compete with the likes of GoodRx, Zocdoc, and more.
Anna Bryson, Doximity’s first Chief Financial Officer (CFO), was appointed in May 2021, which is generally an indication that a firm is preparing to go public. Doximity went public on the New York Stock Exchange (NYSE) on June 23rd, generating $605 million in their first public offering.
Co-founder Tangney became a fortune thanks to Doximity’s IPO, in which 15 percent of the company’s shares were earmarked for doctors. Four out of five U.S. doctors were members of Doximity at the time of its IPO.
Although being a public business comes with an elevated level of scrutiny and visibility, it also has its drawbacks. Confusion ideas concerning the vaccine’s efficacy have been circulating on the platform since August, which is unusual considering that Covid only accepts medical experts who have passed a rigorous screening process.
The platform now employs over 800 employees, the majority of whom work from the company’s San Francisco headquarters.
How Does Doximity Make Money?
In order to earn money, Doximity charges subscription fees for its telemedicine, marketing, and recruiting services. As a result, Doximity’s economic model is subscription-based.
Doximity’s income sources will be examined in further detail in the next section.
Marketing and Promotional Products
Doximity makes the great bulk of its money by charging advertisers membership fees in exchange for the right to place adverts on their platform.
With pharmaceutical firms and health systems (such as hospitals), Doximity generally works jointly to acquire different subscription models and then carry out marketing activities. All of the top 20 pharmaceutical companies, for example, make use of the site to communicate with medical professionals.
When a person is scrolling through their newsfeed on Doximity, those advertising are seen.
Advertisers working with Doximity gain from the ability to reach a highly-targeted audience. If a physician is hired, the platform knows precisely what they do and if they are running their own practice. Even medical practitioners may be directly contacted and engaged with by advertisements.
This enables Doximity’s marketers to target certain user groups, which in turn raises the possibility of a sale.
It’s also illegal to promote drugs in this country. Doximity can thus guarantee that adverts are presented in a compliant way since it is primarily focused on a certain specialty.
Hiring the right people for the job
Doximity generates a substantial portion of its income by providing services to both health systems and medical recruiting businesses.
Companies looking for medical practitioners may once again monetize these recruiting options by paying a membership fee.
LinkedIn, on the other hand, generates a large chunk of its income by helping recruiters discover new workers.
Compared to LinkedIn, Doximity has a distinct advantage in its concentration on physicians. Recruiters may then use this to get more information about potential hiring by allowing doctors to submit their resumes and other qualifications.
That means they may focus their efforts on identifying the ideal applicant by eliminating irrelevant candidates.
Solutions for Telemedicine
Finally, Doximity is launching a number of telemedicine solutions in 2020. Virtual patient visits may be conducted by voice and video using these telehealth solutions that are supplied to health systems, medical organizations, and individual medical practitioners.
Customers must pay a monthly charge to use these telehealth services. The sort of consumer has an effect on the pricing. Pricing for big health systems is based on the number of hospital beds, while solo practitioners pay per user.
Doximity’s move into telemedicine is a logical one. Over the next several years, the sector is predicted to expand at a double-digit rate.
The fact that Doximity is on the minds of so many medical professionals in the US makes it an obvious choice for those who already spend time on the site.
In addition, Doximity always took care to comply with any conceivable security or privacy regulation when it initially began operations. Thus, it is probable that it has been able to gain the client confidence needed to provide compliance telehealth services.
Doximity Revenue, Funding, and Appraisal
At least $81.8 million has been invested in Doximity, according to Crunchbase.
T. Rowe Price, Morgan Stanley, InterWest Partners, Morgenthaler Ventures, and many more participated in the private rounds.
When Doximity went public in June 2021, it raised an additional $605.8 million. Investors valued the company at $4.6 billion at the time of its IPO. At the time of this writing, its market capitalization was $8.5 billion.
A rise of $116 million from the year before to $206 million in revenue for Doximity’s fiscal year 2021.