Doximity Raises $54 Million in New Funding Round

Doximity Inc., an online professional network for medical doctors, raised $54 million in a round of financing co-led by Draper Fisher Jurvetson and T. Rowe Price Associates Inc.

“We will use the funds to expand the network in Canada and to other health-care professionals” such as nurses and doctors’ assistants, Jeff Tangney, Doximity’s chief executive officer, said in an interview. Morgan Stanley Investment Management also participated in the round.

He declined to comment on the Internet company’s valuation. Doximity was valued at about $500 million during funding talks, people with knowledge of the matter said earlier this month.

Doximity was started in 2011 and previously raised about $27 million from investors including Emergence Capital Partners and Morgenthaler Ventures. It’s the largest U.S. medical professional network, with 290,000 doctors, or 40 percent of physicians as members, more than the American Medical Association, Tangney said.

The website also lets hospitals find doctors and charges recruiters $12,000 a year, allowing them to send 50 messages a month.

Tangney previously co-founded Epocrates Inc., a provider of clinical information that went public in 2011 and was later bought by Athenahealth Inc., in 2013.

Members of Doximity’s board include Konstantin Guericke, who co-founded LinkedIn Corp. (LNKD), the largest professional social network that’s more than tripled in value since its initial public offering in May 2011 to a market capitalization of $17.7 billion.

To contact the reporter on this story: Serena Saitto in New York at ssaitto@bloomberg.net

To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Reed Stevenson, Ari Levy

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