Health-Care Startup ZocDoc's CEO to Be Replaced by Co-Founder

Cyrus Massoumi is relinquishing his day-to-day role as chief executive officer of doctors-appointment booking startup ZocDoc Inc. to fellow co-founder Oliver Kharraz.

Massoumi will continue as board chairman, according to an internal letter sent Friday by Kharraz to ZocDoc employees. The board approved the change in leadership at the New York-based startup, the letter said.

“In our next chapter, we will scale our business and accelerate our growth through new products, robust marketing efforts, and deeper enterprise partnerships with health systems,” Kharraz wrote. “I will be reaching out to every team over the coming weeks.”

Founded in 2007, ZocDoc provides medical professionals with an online scheduling platform for patients to book appointments. The company has three offices and more than 600 employees. ZocDoc has raised $230 million and was last valued at $1.8 billion, according to the company.

“We are embarking on a new chapter, and I will remain the company’s biggest supporter,” Massoumi said by e-mail.

ZocDoc is among startups seeking to use technology to improve the health-care industry, which accounts for a little less than a fifth of the U.S. economy. Venture money has poured into the space, with more than $11 billion invested in 2014, according to CB Insights. This year, the research firm projects that health care will account for $12.7 billion of private financing.

“Oliver has been a leader of the company since the founding, and we have great confidence in his expanded role as CEO and in the entire employee team,” David Weiden, a partner at Khosla Ventures and ZocDoc lead investor and board member, said by e-mail.

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