DirectDerm
DirectDerm, founded in 2010 and headquartered in Palo Alto, California, is a hybrid dermatology provider combining nationwide asynchronous teledermatology consultations with six in-person clinics across Northern and Central California, serving individual patients, referring primary care providers, and contracted health plans.
- Company typePrivate
- Founded2010
- HeadquartersEast Palo Alto, United States
- Headcount11–50
- GTM typeB2B and B2C
- OfferingServices
What DirectDerm does
DirectDerm is a hybrid dermatology care provider founded in 2010 and headquartered in Palo Alto, California, operating under the legal entity Direct Dermatology, Inc. The company delivers dermatology consultations and treatment plans through two integrated channels: a nationwide asynchronous teledermatology platform covering 45 U.S. states (excluding AR, DE, KS, MS, WV) and a network of six in-person clinics across Northern and Central California (Manteca, Sacramento, Fresno, Salinas, Los Banos, Merced). The teledermatology platform enables patients and referring primary care providers to submit photos and medical history through a secure online portal, with board-certified dermatologists returning a diagnosis and treatment plan within 24-48 hours, supported by electronic prescribing to local pharmacies and secure two-way messaging.
The company is led by founder and CEO David J. Wong, MD, PhD (Stanford-trained dermatologist and Clinical Associate Professor at Stanford), with the clinical team comprised exclusively of U.S. board-certified dermatologists trained at Stanford, Harvard, UCLA, UCSF, USC, Vanderbilt, and Harbor-UCLA. Each case reportedly undergoes at least two-tier dermatologist review to support diagnostic accuracy. In-person clinic services extend to advanced procedures and treatments that cannot be performed asynchronously, including XTRAC excimer laser therapy for psoriasis, vitiligo, and eczema, and TheraClearX broadband-light acne treatment.
DirectDerm operates a hybrid revenue model combining insurance-billed consultations, a flat self-pay rate of $120 per consultation for uninsured or out-of-network patients (HSA-eligible), and in-clinic procedure revenue. Revenue is generated across three customer segments: individual patients via a self-serve online sign-up (nationwide telehealth and California clinics), referring primary care providers who use a free secure portal to coordinate specialist care, and enterprise health plans/health systems under contracted arrangements (including Hill Physicians Medical Group, Health Plan of San Joaquin, and Molina Healthcare) where DirectDerm serves as an in-network dermatology benefit. The company accepts 14+ major insurance plans including United Healthcare, Anthem BlueCross, Blue Shield of California, HMSA, Molina, Centene, HealthNet, Hill Physicians, Health Plan of San Joaquin, California Health and Wellness, California Health Plan, Regence, and Asuris. DirectDerm remains privately held and founder-controlled, with no disclosed venture capital or private equity ownership and only modest disclosed funding rounds (a $240K Health Innovation Fund seed in 2011, an undisclosed Nebraska Angel Network investment in 2018, and Decathlon Capital Partners growth financing in 2020).
DirectDerm firmographics
Firmographics- Name
- DirectDerm
- Legal name
- Direct Dermatology, Inc.
- Website
- https://directderm.com
- Company type
- Private
- Founded year
- 2010
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- DirectDerm, founded in 2010 and headquartered in Palo Alto, California, is a hybrid dermatology provider combining nationwide asynchronous teledermatology consultations with six in-person clinics across Northern and Central California, serving individual patients, referring primary care providers, and contracted health plans.
- Ownership category
- akta.pro rank
DirectDerm industry classification
Industry- Product category
- Telemedicine Dermatology Services
- SIC
- Services-Offices & Clinics Of Doctors Of Medicine (8011)
- akta.pro primary industry
- Dermatology Telemedicine Platforms (HLALAGAA)
- akta.pro secondary industries
- General & Medical Dermatology (HLAKACAA), Procedural Dermatology (Office-Based Surgery) (HLAKACAG)
Keywords
Where DirectDerm is headquartered
LocationHeadquarters
- HQ city
- East Palo Alto
- HQ country
- United States
- HQ region
- North America
Offices7 records
Markets served
DirectDerm business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales
Revenue model
- Insurance-Billed Teledermatology Consultations: DirectDerm bills accepted insurance plans directly for teledermatology consultations. For patients with accepted insurance, the cost is typically a standard copay. The company works directly with payer partners to provide services under contracted agreements.
- Self-Pay Consultations: For patients whose insurance plans are not accepted, DirectDerm offers a discounted self-pay rate of $120 per consultation with board-certified dermatologists. The service qualifies as a HSA-eligible medical expense.
- In-Person Clinic Visits: Revenue from in-person dermatology services at six clinic locations across Northern and Central California, covering conditions such as acne, eczema, psoriasis, skin cancer screenings, biopsies, and advanced laser treatments (XTRAC, TheraClearX). Services are billed through insurance or self-pay.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Pay-as-you-go | Insurance-covered consultation (accepted plans) |
| One time/ perpetual license | Pay-as-you-go | Self-pay consultation (unaccepted insurance or uninsured) |
Go-to-market motion3 records
Distribution channels4 records
Marketing channels5 records
DirectDerm product offering
Product offeringCore offering
DirectDerm is a hybrid dermatology care provider that delivers online (teledermatology) and in-person consultations with board-certified dermatologists. Patients upload photos and medical history through a secure asynchronous platform and receive a full diagnosis and treatment plan within 24-48 hours. The company also operates six physical dermatology clinics in Northern and Central California offering medical dermatology, biopsies, skin cancer screenings, and advanced laser treatments such as XTRAC and TheraClearX.
Product overview
DirectDerm is a hybrid dermatology platform combining a core teledermatology service with in-person clinic locations. The primary offering is the Teledermatology Platform, which enables patients to receive online consultations with board-certified dermatologists within 24-48 hours. This core platform is complemented by six in-person clinic locations across Northern and Central California offering advanced procedures and treatments. Add-on modules include XTRAC Laser Therapy for targeted UVB treatment of psoriasis, vitiligo, and eczema, and TheraClearX for acne treatment. Medical Dermatology Services covering acne, eczema, psoriasis, skin cancer, vitiligo, and pediatric care are available through both online and in-person channels.
Differentiator
Problem solved
Functional benefit
Products and services
- Teledermatology Platform
Quantifiable outcome
- 65% reduction in cost per case for one contracted health plan
- +4 more outcomes
Companies that use DirectDerm
Customer profileNamed customers5 records
Segments4 records
Ideal customer profiles3 records
DirectDerm technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
DirectDerm partnerships and signals
Strategic signalPartnerships
Five partnerships are on record, tiered core and supporting.
- Health Plan of San JoaquincoreHealth Plan of San Joaquin partnered with DirectDerm on a RAND/Harvard-affiliated study demonstrating that teledermatology nearly doubled the number of patients receiving dermatology care. The partnership provides DirectDerm services as a specialty benefit to health plan subscribers, with one documented outcome being a 65% reduction in cost per case.
- Hill Physicians Medical GroupcoreHill Physicians Medical Group uses DirectDerm for dermatology consultations to expand specialist coverage. Regional Director Doug Robertson noted they reduced their backlog to nothing in 90 days. Medical Director Dr. Harpreet Grewal stated the cost and service is 'unsurpassable.'
- Molina HealthcarecoreMolina Healthcare contracted with DirectDerm to provide urgent teledermatology consults. Regional Medical Director Dr. David Eibling stated DirectDerm has been 'instrumental in life-saving consults that we were able to attain in the hospital, which is unheard of.'
- XTRAC (Excimer Laser)supportingDirectDerm offers XTRAC Excimer Laser Therapy for treatment of psoriasis, vitiligo, and eczema at its California clinic locations. XTRAC is an FDA-cleared, board-certified dermatologist-recommended treatment. Over 10 million XTRAC treatments have been performed worldwide.
- TheraClearXsupportingDirectDerm offers TheraClearX acne treatment at its California clinic locations. TheraClearX is an FDA-cleared, non-invasive acne treatment system combining gentle vacuum and broadband light, covered by most insurance plans.
Scale indicators7 records
Recent moves7 records
Expansion highlights4 records
DirectDerm competitors and assessment
Company assessmentDirect peers
- Curology: Curology is a direct-to-consumer teledermatology brand offering online consultations and prescription skincare for acne, anti-aging, and related conditions. It is the most directly comparable DTC peer to DirectDerm's consumer-facing teledermatology service.
- Apostrophe: Apostrophe is a DTC teledermatology platform connecting patients with dermatologists for prescription treatment of conditions such as acne and anti-aging. Operates an online consult-and-prescribe model highly analogous to DirectDerm's consumer flow.
- First Derm: First Derm operates an asynchronous teledermatology platform focused on skin condition triage and dermatologist review, with similar store-and-forward mechanics to DirectDerm. Closest international specialty comparison.
- DermatologistOnCall (Iagnosis): Iagnosis' DermatologistOnCall is a pioneer async teledermatology service providing online dermatologist consults for patients and health plans. Same specialty, same async consult-and-prescribe workflow as DirectDerm.
Broad incumbents
- Hims & Hers Health: Hims & Hers operates a large DTC telehealth platform spanning hair, sexual health, mental health, and skincare/dermatology. Broad incumbent with overlapping consumer dermatology offering but much wider scope.
- Teladoc Health: Teladoc is a large multi-specialty virtual care provider that includes dermatology among its service lines and contracts with major payers. Broad incumbent with overlapping enterprise dermatology contracting motion.
- MDLive: MDLive (now part of Evernorth) is a multi-specialty telehealth provider including teledermatology, serving health plans and employers nationally. Broad incumbent with overlapping payer/B2B dermatology distribution.
- Doctor On Demand: Doctor On Demand is a multi-specialty virtual care platform that includes dermatology consults and contracts with major health plans. Comparable enterprise teledermatology distribution model with broader service scope.
Emerging players
- Skin Analytics: Skin Analytics is an emerging AI dermatology diagnostics company offering AI-based skin lesion assessment for primary care and dermatology pathways. Emerging player that could compete on the AI-diagnostic layer underlying teledermatology.
Others
- VisualDx: VisualDx is a clinical decision support and dermatology image reference platform used by physicians and dermatologists. Adjacent enabling tool relied on by teledermatologists; not a direct competitor but serves the same clinician workflow.
Market position
Strengths4 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
DirectDerm social profiles
Digital presenceDirectDerm financial estimates
Financial estimateRevenue estimate
Valuation estimate
DirectDerm leadership team
Management profileNumber of profiles
Profiles4 records
DirectDerm funding detail
Funding detailFunding overview
Funding rounds3 records
Investors3 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
DirectDerm M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about DirectDerm
What does DirectDerm do?
DirectDerm is a hybrid dermatology care provider that delivers online (teledermatology) and in-person consultations with board-certified dermatologists. Patients upload photos and medical history through a secure asynchronous platform and receive a full diagnosis and treatment plan within 24-48 hours. The company also operates six physical dermatology clinics in Northern and Central California offering medical dermatology, biopsies, skin cancer screenings, and advanced laser treatments such as XTRAC and TheraClearX.
Is DirectDerm a public or private company?
DirectDerm is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was DirectDerm founded?
DirectDerm was founded in 2010. It employs 11 to 50 people.
Where is DirectDerm based?
DirectDerm is headquartered in East Palo Alto, United States, in the North America region.
How does DirectDerm make money?
Three revenue lines are on record. Insurance-Billed Teledermatology Consultations are the primary driver. The others are self-Pay Consultations and in-Person Clinic Visits.
Who are DirectDerm's main competitors?
Direct peers on record are Curology, Apostrophe, First Derm and DermatologistOnCall (Iagnosis). Broad incumbents are Hims & Hers Health, Teladoc Health, MDLive and Doctor On Demand. Skin Analytics is listed as an emerging player. VisualDx is listed as an others.
Does DirectDerm have an API?
No public API is recorded for DirectDerm.
What industry is DirectDerm in?
DirectDerm's product category is Telemedicine Dermatology Services. Its primary akta.pro industry code is HLALAGAA, Dermatology Telemedicine Platforms, with a secondary code of HLAKACAA, General & Medical Dermatology. Its SIC code is 8011.