Doximity Inc., an online professional network for medical doctors, is in talks to raise $40 million to $50 million in a round of financing from new and existing investors, people with knowledge of the matter said.
The Internet company, which has already raised about $28 million from Emergence Capital Partners, Morgenthaler Ventures and others, may be valued at about $500 million, said the people, who asked not to be identified because the discussions are private. Two new investors are competing to lead the new round, and the terms may change as the deal’s closing is a few weeks away, one of the people said.
Doximity, which started in 2011, is the largest U.S. medical professional network, counting 40 percent of American physicians as members, according to its website. Chief Executive Officer Jeff 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.
Aanchal Dhar, a spokeswoman for San Mateo, California-based Doximity, declined to comment.
The fundraising effort comes as technology startups take advantage of favorable market conditions to raise hundreds of millions of dollars at multibillion dollar valuations. Cloudera Inc. raised $900 million in a funding round last month that was led by Intel Corp., at a valuation of $4.1 billion. Airbnb Inc. is in talks to raise about $450 million at a valuation of more than $10 billion, people with knowledge of the deal said last month.
Members of Doximity’s board include Konstantin Guericke, who co-founded LinkedIn Corp., the largest professional social network, which has more than quadrupled in since its initial public offering in May 2011, reaching a market valuation of $22.4 billion.