Insurance company Aetna had offered to buyout ZocDoc for $300 million at one point, but the founders turned it down, according to BusinessInsider. Founded in 2007, ZocDoc raised around $100 million in funding along with a $55 million convertible note.
ZocDoc is an app and website that helps people set up doctor appointments as soon as they are needed. This prevents people from having to wait. Doctor practices pay around $300 per month to be listed on the website.
The founders of the company Cyrus Massoumi, Nick Ganju, and Oliver Kharraz are aiming to turn the startup into a public company. After ZocDoc turned down Aetna’s offer, Healthagen ended up getting acquired in December 2011. Healthagen created an app that is similar to ZocDoc’s called iTriage.
Was It Smart To Walk Away?
The three founders would have become a whole lot richer if they took the offer. Clearly they had bigger goals. In September 2011, investors gave ZocDoc $75 million in funding with a $700 million valuation. ZocDoc is now profitable in almost all of their 35 markets. The company’s mobile bookings are up 500% year-over-year and the website bookings are up 200%.