Doximity’s S-1 could clarify why healthcare exits are heating up – TechCrunch

There was a time when this column was greater than a unending run of IPO protection. Then the unicorn liquidity cycle kicked off and it’s been a long term of public choices ever since. This morning is not any exception.

Doximity filed to go public earlier in the present day. You probably haven’t heard of the corporate as a result of it exists within the modestly obscure world of telehealth. But it surely’s a venture-backed startup all the identical that raised greater than $80 million from traders like Emergence, InterWest Companions, Morgenthaler Ventures and Threshold, in keeping with Crunchbase knowledge.

Notably, Doximity has not fundraised since 2014, a yr wherein it attracted just below $82 million at a valuation of $355 million, per PitchBook knowledge. How has it managed to not increase for thus lengthy? By producing lots of money and revenue over time. Healthtech communications, it seems, could be a profitable endeavor.

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Doximity is a social community that enables medical doctors to talk to one another whereas complying with HIPAA, a federal legislation that promotes medical privateness. The community, initially outlined as a LinkedIn for medical professionals, provides medical doctors a Rolodex for specialists, a newsfeed for healthcare updates, a communication device to speak to sufferers, and a job search device.

In 2017, Doximity claimed that it reached 70% of all U.S. medical doctors, greater than 800,000 licensed professionals.

That is CEO Jeff Tangney’s second time bringing a healthtech firm public after his earlier medical software program startup, Epocrates, debuted in 2011.

Let’s chat briefly in regards to the bigger healthtech exit market after which dig into Doximity’s IPO submitting and get our heads round how the corporate managed to keep away from private-market dilution for seven years — and what the corporate could also be value.

Healthtech exits

The worldwide digital well being market is estimated to hit $221 billion by 2026, underscoring how massive a possibility the sector could current to enterprise capitalists. However traders aren’t merely simply listening to estimates; they’re seeing a variety of exits in digital well being (learn: liquidity) which can be warming up their checkbooks.

CB Insights estimates that there have been 79 healthcare IPOs and M&A transactions in Q1 2021 alone, a 60% enhance from the quarter prior. One other report says that there have been 145 acquisitions of digital well being firms in 2020, up from a stable 113 in 2019.

Whereas nonetheless rising, it’s truthful to say that these figures describe a wholesome exit atmosphere.

The checklist of offers out there is rapid-fire. Earlier this yr, Everlywell, based in 2015, acquired two healthcare firms to develop its digital well being service and distribution. Final week, Trendy Fertility was purchased by Ro for north of $225 million in a majority-equity deal. Earlier than you begin complaining that it’s not an IPO, take into account this: A lower than four-year-old firm simply acquired purchased for 1 / 4 of a billion {dollars} by one other firm that’s lower than 4 years outdated.

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