Jeff Tangney founded his first healthcare technology startup Epocrates during the dot-com bubble. Although the company survived the crash and eventually went public, it eventually made a disappointing acquisition for less than $300 million.
When Downey started his next business, Doximity, in 2010, he learned something: Don’t raise too much capital. Don’t burn too much cash. Solve a real problem for the doctor.
Through Doximity, Tangney created a web service that is both a professional network (think the doctor’s LinkedIn) and a secure way for medical experts to communicate and share information with patients and colleagues. It now has 1.8 million medical professionals as users in the United States, including more than 80% of physicians.
On Thursday, Doximity made its debut on the New York Stock Exchange. After the IPO raised about $ 500 million, the market value at the end of this week was close to $ 10 billion. Tangney shares are valued at $ 2.9 billion.
These are big numbers, especially considering that before this week, Doximity had never appeared on the list of $1 billion technology company “unicorns”. It valued the company at less than US$400 million in the last round of financing in 2014. Downey said that because Doximity is profitable, it still hasn’t touched the $50 million raised seven years ago.
“I did resist some of the Silicon Valley wisdom of, you need to go big, you need to hire 40 more salespeople and do all these things,” Tangney, 48, said in an interview on Thursday, after ringing the bell at the NYSE.