| SAN FRANCISCO, April 29
SAN FRANCISCO, April 29 Doximity, an online
professional network for physicians, has raised $54 million in
new funding from investors including T. Rowe Price and Draper
Fisher Jurvetson, making it one of the most well-financed
private companies in health IT.
The service, one of a growing crop of startups trying to
establish social networks for industry professionals, helps
health providers migrate away from paper-based systems and
Doximity, which describes itself as the "LinkedIn for
doctors," is best known for software that licensed physicians
use to create profiles and send secure messages to each other.
It claims 250,000 doctors in the United States - about one in
three - have registered for this service.
Doximity makes the bulk of its money by charging urgent-care
centers, independent practice groups, and hospital networks a
fixed fee of $12,000 a month to recruit doctors. Similar to
LinkedIn, recruiters can send a fixed number of direct messages
each month to potential candidates but must also include
information about the job's location and salary.
On average, chief executive officer Jeff Tangney said the
company pulls in $1 million in monthly revenues.
"Doctors are in deep demand and the current recruiting
methods are insufficient," said Tangney.
Industry-focused social networks have attracted interest
from investors in recent years, and are attempting to seize
market share from LinkedIn, now the leading online recruitment
While Doximity goes after physicians, startups such as
HireTrade and Avvo are building online marketplaces for lawyers,
while IdeaPlane is developing social networks for
highly-regulated financial institutions.
LinkedIn co-founder Konstantin Guericke currently serves on
Doximity's board of directors.
"It's rare to see lightning strike twice," he said in a
statement, adding that these businesses can bring value to
professionals and "can be great businesses, too."
San Francisco-based Doximity has raised $81 million in
funding to date. In January, the 55-person company said it
experienced its first cash-flow positive month.
Venture firm Draper Fisher Jurvetson and asset manager T.
Rowe Price led the series C round. Morgan Stanley Investment
Management also participated, alongside existing investors
Emergence Capital Partners, Morgenthaler Ventures and Interwest
(Reporting By Christina Farr; Editing by Ken Wills)