There was a time when this column was more than a never-ending run of IPO coverage. Then the Einhorn liquidity cycle began and there has been a long line of public offerings since then. This morning is no exception.
Doximity submitted to go public earlier today. You probably haven’t heard of the company because it exists in the humble dark world of telehealth. Still, it’s a venture-backed startup that has raised more than $ 80 million from investors like Emergence, InterWest Partners, Morgenthaler Ventures, and Threshold. according to Crunchbase data.
In particular, Doximity has not raised any donations since 2014, a year it attracted nearly $ 82 million at a value of $ 355 million. per PitchBook data. How did it manage not to increase for so long? By generating a lot of money and profit over the years. It turns out that health technology communication can be a lucrative endeavor.
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Doximity is a social network that allows doctors to talk to one another in compliance with HIPAA, a federal law promoting privacy. The network, originally defined as LinkedIn for medical professionals, provides doctors with a specialist Rolodex, a news feed for health care updates, a communication tool for patient interviews, and a tool for finding jobs.
In 2017, Doximity claimed it was reached 70% of all US doctors, more than 800,000 licensed professionals.
This is the second time CEO Jeff Tangney has listed a healthcare technology company after his former medical software startup Epocrates debuted in 2011.
Let’s talk briefly about the larger healthcare technology exits market, then dive into Doximity’s IPO filing and get an idea of how the company has managed to avoid watering down the private market for seven years – and what the company may be worth.
Health Tech Exits
The global digital health market is likely to be affected $ 221 billion by 2026This underscores the great opportunity the sector offers for venture capitalists. Investors don’t just pay attention to estimates, however. You are seeing a number of exits in digital health (read: liquidity) warming up your checkbooks.
CB Insights It is estimated that there were 79 healthcare IPOs and M&A deals in the first quarter of 2021 alone, up 60% from the previous quarter. Another report According to data, there were 145 digital health company acquisitions in 2020, up from a solid 113 in 2019.
While these numbers are still growing, it is fair to say that these numbers describe a healthy exit environment.
The list of deals in the market is straight forward. Earlier this year, Everlywell, founded in 2015, acquired two healthcare companies to expand its digital healthcare service and distribution. Last week, Ro acquired Modern Fertility for more than $ 225 million in a majority ownership deal. Before complaining that this is not an IPO, consider the following: A company less than four years old was just bought for a quarter of a billion dollars by another company less than four years old.