On Wednesday Doximity IPO'd and its stock price more than doubled giving it a valuation of ~$10 billion. That also meant CEO and co-founder, Jeff Tangney's share was worth worth $2.9 billion.
For many, including us, the IPO was the first time we heard of Doximity. It's not every day that a $10 billion company goes under the radar. The reason? Doximity never showed up on a “unicorn” list of billion-dollar tech companies. Valuation marks are set when a company raises capital. But for Doximity the last time that happened was the year 2014. They raised $50 million and they still have not touched that money because they are profitable! (that's gotta be a unicorn event in the world of unicorns)
Tangney is focused on sustainable and steady growth for Doximity. He has not paid brands for the sake of building his personal profile, which is another reason why the company has remained largely unkown in Silicon Valley. Doximity's advertising budget for last year was $2.6 million, which is the amount Uber spends on average in a day.
Founded in 2011, Doximity is basically a LinkedIn for doctors and has over 1.8 million medical professionals on its network, and also make money by selling ads on its platform. They already have 80% of US physicians and over 90% of recent medical school graduates on their platform. They also recently launched a tele-health service and served 63 million virtual visits last year.
Short Squeez Takeaway: The CEO, Jeff Tangney has ignored traditional Silicon Valley wisdom, where you need to go big, raise excessive amounts of capital to grow aggressively. He did learn the painful lesson with his last company, Epocrates, where he raised a bunch of capital, hired like crazy and was forced to lay off staff later. Jeff Tangney did it his way this time, and he is $3 billion richer for it. (someone also please check up on Clubhouse asap)