Doximity Closes $54 Million Series C, Prepares For International Expansion

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San Francisco, Calif.-based physician networking site Doximity announces a $54 million Series C round, co-led by Draper Fisher Jurvetson (DJF) and T. Rowe Price, with additional funding contributed from new investor Morgan Stanley and returning investors Emergence Capital Partners, Morgenthaler Ventures, and InterWest Partners. The round brings Doximity’s total funding to $81 million since it’s 2011 founding.

Doximity has hit the tipping point on most conceivable measures of success. The site, often described as LinkedIn for doctors, has tripled its user base since January 2012, and has now captured 40 percent of the US physician market, claiming more members than the American Medical Association. Another milestone for the company passed in January 2013, when it booked its first profitable month.

"For real change in healthcare, we need to first have a connected network of doctors and healthcare providers on one platform. It is a winner-take-all proposition and Doximity is clearly the emerging winner.” – Rebecca Lynn, Partner at Morgenthaler Ventures.

The company is a staple at most major physician conferences, like the American College of Emergency Physicians, where credentialed physicians are enticed to create an account in exchange for some of the best vendor giveaways available. Last year, for example, Doximity was handing out backup iPhone power supplies. The startup is interested in much more than just new signups though, the real focus is on growing physician utilization rates on its platform.

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To initially attract new doctors, Doximity might use high-end giveaways, but to keep them coming back, the company has developed a valuable platform of communication and research tools. The site is organized by both specialty and hospital affiliation, making it easy to find local colleagues. From here, colleagues can use the app’s free secure messaging tool to seek advice and coordinate care, This local approach to connecting users has been attributed to a significant increase in usage rates. Doximity has reported direct correlations between the percent of the physicians in a community that are signed up with an account, and the overall time spent on the site by each user within that community. The more prevalent Doximity is in an area, the more everyone uses the platform.

In addition to communication tools, Doximity provides a personalized news service which pulls together relevant articles and studies published within their field. As doctors read the articles, they are simultaneously earning CME credits through a partnership between Doximity and Cleveland Clinic. Doctors can earn 20 CME credits per year this way.

Doximity says that it will use the new funding to add features, like helping to track certification and credentialing requirements for its users, and to expand its growth internationally.


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