ZocDoc Raises $130 Million Series D on $1.8 Billion Valuation

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ZocDoc has raised a massive $130 million Series D funding round according to recently filed SEC forms, bringing its total funding since launch to $230 million. The New York-based digital health giant is selling preferred stock for $28.22 per share, valuing the company at $1.8 billion. That share price is nearly double the $14.75 it was asking for preferred shares during its $75 million Series C fundraising round in 2011. The new round was led by Baillie Gifford and London-based Atomico, both first-time investors in ZocDoc, and included returning investor Founders Fund. Forbes reports that Yuri Milner’s DST Global and Khosla Ventures are likely also included in the list of returning investors. With a $1.8 billion valuation, ZocDoc is now one of the highest valued venture-backed companies in New York, trailing only Blue Apron ($2 billion) and WeWork Companies ($10 billion).

ZocDoc launched in early 2007, promising to bring streamlined appointment-booking services to the medical community. The team followed a tried and tested modern-era business model of building a thin layer of free technology between consumers and an industry, and then monetizing access to those consumers. ZocDoc initially launched the platform in Manhattan, and within a year of launching went on to raise a $5 million Series A. Since then, the company has had little trouble raising funds as it saw year after year of steady and continued growth. With the announced new funding, ZocDoc reports that it is on pace to double its health system clients yet again in 2015. Today, ZocDoc is used by 7 million patients per month to book appointments with providers spanning more than 50 specialties. The ZocDoc team has expanded its market presence from Manhattan across the US, and now covers 60 percent of the general population.

While ZocDoc’s platform is still free to patients, the company monetizes the platform by selling scheduling services to practices and provider groups. A separate service called Online Check-in allows patients to fill out insurance and pre-registration paperwork online prior to their visit, freeing up office administrators to attend to other tasks. ZocDoc will use its new funding to develop additional products that it says will expand its reach beyond scheduling appointments.


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