Derma2Go

Problem

Research indicates that currently 69% of dermatologists are over 50 years old in Germany (Kis et
al., 2017). It can be assumed that in 15 years there will be an undersupply of practicing
dermatologists which implies inadequate medical care. This effect is intensified by the fact that the
total number of patients with skin diseases will rise (Augustin et al., 2018). At the same time, the
needs of patients have changed in the age of digitalization. A survey showed that 76% of patients
wish digital solutions as part of medical consultation. Most respondents (65%) would pay for such
services (Greis et al., 2018).

Our Solution

With derma2go, we have developed a solution that addresses both problems. Derma2go bridges
physical distances by providing a secure online platform where patients receive a dermatological
diagnosis from their trusted doctor. Doctors use derma2go as a tool to optimize triage, resulting in
significant savings of time. Patients have access to an extensive network of practicing
dermatologists. Instead of waiting several months for an appointment, patients receive a reliable
and cost-effective diagnosis within 24 hours.

Business Model

We act as a platform operator in a two-sided market. We set the price of a diagnosis via derma2go
and monetize the doctors with a shared revenue model. We invest a large part of our turnover in
patient marketing to better understand the needs of patients with skin diseases. With these
insights, we actively help doctors to better address patients’ needs and thus acquire new patients.
On the other hand, we actively acquire new local doctors and thus provide the patient access to a
network of leading dermatologists. The interaction of these two factors leads to network effects on
our platform. The resulting economies of scale enable us to grow steadily and continuously adapt
and expand our service portfolio.

Competitive Environment

The teledermatology market is still very immature. Existing competitors target patients as their
main customer group and only offer treatment for few dermatological diseases. However, we found
our niche by offering a comprehensive solution in the B2B2C market by actively acquiring both
dermatologists and patients.

Roadmap

After having implemented our system in major Swiss hospitals and clinics, we are currently
preparing to enter the German teledermatology market. With these learnings, we want to expand
to further health disciplines (e.g. ophthalmology, paediatrics) to provide online medical care to
everyone. In cooperation with leading research institutions, we plan to integrate AI-based image
recognition and decision support systems into our platform.

Investment Proposal

We currently seek funding for the next three years. In order to generate high
growth in patient demand, we intend to invest in digital marketing.
This includes search engine marketing and social media marketing. The knowledge gained through
digital marketing will be used to identify target groups and convert these into paying end-users.
Furthermore, we want to attract motivated talents for our marketing and sales activities and thus
need to spend money on salaries. Even though we already operate a technically mature
platform, we will use a share of the money to improve our product. Lastly, we will use the
money to travel and present derma2go to a worldwide audience consisting of both specialists and
patients.