Investment IdeasMy Portfolio

Zocdoc

Online medical care appointment booking service

PRE-IPOhigh risk

Funding rounds A-D

Company income
$6 mln
$17 mln
$75 mln
$130 mln
Current price
$21
Min Amount
$10
Earliest start
Any time
Fee
Enter 3.50%Leave 0.50%Success 20%

Invest in Zocdoc

Investment Idea Details
About the company

Zocdoc is an online platform where patients can find the right specialist, make an appointment and get a video consultation. The company was founded in 2007 and is headquartered in New York.

The platform was a leader in the market of online medical appointments, and during the pandemic, Zocdoc entered into a partnership with Twilio and entered the fast-growing telemedicine market. The company has launched the Zocdoc VideoService (VSP) that helps patients communicate with specialists without risks, get consultations and monitor treatment progress online. Zocdoc has become one of the few digital medical platforms providing for both face-to-face and online medical consultations.

Using Zocdoc, 10,000 providers have carried out nearly one million video appointments across 100 specialities. In May 2020 the company’s founder and CEO Oliver Kharraz told Engadget that video visits now account for 30 to 40 percent of overall bookings, up from “essentially zero at the beginning of March.”

Market Opportunities

The global telemedicine market size is expected to reach $155.1 billion by 2027, expanding at a CAGR of 15% over the forecast period. Increasing incidences of chronic conditions and rising demand for self-care medicines are the key factors driving the market.

Digital health funding has hit record levels propelled by the technology boom during the COVID-19 pandemic. Total corporate funding for digital health including venture capital, debt and public market financing reached $21.6 billion in 2020, which is up 103% compared to $10.6 billion in 2019, according to a year-end report by the research firm Mercom Capital Group

Risks

Intense competition: the market is invaded by a growing number of businesses/ telemedicine services.

Possibly limited growth potential. As Zocdoc has already tapped into most major US metropolitan areas, further expansion in the US may be constrained.

Financials and Valuation

Zocdoc has reported strong growth, with annual revenue up by more than 35% before the pandemic and despite the disruptions provoked by the pandemic, the company’s on track to reach a new record revenue.

In November 2021 the company announced a $150 million investment round from Francisco Partners, the total valuation being undisclosed. In February 2021 the valuation was about $2.6 billion.

As of November 2021 Zocdoc has raised a total of $375 million in funding over 10 rounds from Goldman Sachs (invested in Alibaba, Spotify, Pinterest), Peter Thiel's Founders Fund (invested in Airbnb, SpaceX, Lyft), Yuri Milner's DST Global Fund (invested in Facebook, Spotify, Flexport, Robinhood) and others.

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Publication
25 Sep
Minimum Amount
1 share
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Shares Outstanding
Limited
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Public Offering Date
Pending
Estimated Gains
+150%
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Exit
̴ 2021
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Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

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Risks

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  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

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