Sword Health, which touts itself as shifting healthcare from human-first to AI-first through its AI care program, announced it has raised $40 million, bringing its total funding to $380 million and its valuation to $4 billion.
The round was led by existing investor General Catalyst, with participation from Comcast Ventures, Oxy Capital, Khosla Ventures, Indico Capital, Armilar, Lince Capital and Shilling.
The company’s founder and CEO, Virgilio Bento, reportedly told TechCrunch that the company may pursue an IPO by 2028.
WHAT IT DOES
The New York-based company develops physical therapy programs for pelvic health and muscle and joint pain.
The company also offers physical health education and resources, pain-fighting exercises and access to clinical pain specialists. It states that its AI tools can also detect and engage with high-risk members to help prevent costs associated with unnecessary surgeries.
Alongside the funding announcement, the company announced that it is now entering the mental health space, unveiling its new offering, Mind.
Mind pairs AI with mental health specialists to offer 24/7 care. The company will also provide its M-band, a proprietary wearable device that can detect early indicators of depression and anxiety. The company says the band will enable “proactive outreach by Mind clinicians.”
Sword will use the funds to support its global expansion, further develop its AI models across various areas of care and accelerate its momentum in mergers and acquisitions.
“We’ve rebuilt care delivery from the ground up—replacing a century-old, labor-intensive model with AI that removes barriers to world-class care for everyone who needs it,” Bento said in a statement.
“This funding is a milestone that allows us to deepen our foundational AI research and to accelerate our expansion into new healthcare verticals like mental health—a field still dominated by unscalable and ineffective models—bringing truly life-changing care to millions who struggle with mental health around the world, the same way we did it for millions with physical pain.”
MARKET SNAPSHOT
In January, Sword Health acquired UK-based Surgery Hero in an all-equity transaction. Surgery Hero offered digital health tools aimed at enhancing patient’s surgical outcomes. Its offering was integrated into Sword Health’s platform and its team joined Sword.
Last year, the company secured $130 million in a Series E round through a mix of primary and secondary sales, which brought its valuation to $3 billion.
In 2021, Sword announced it raised $163 million in Series D funding. The heavily oversubscribed round brought the total primary and secondary transactions to more than $320 million invested in Sword. The round brought its valuation to $1.8 billion.
The company stated that the primary round of $163 million was followed by an additional $26 million in a secondary transaction, which propelled the company’s valuation to $2 billion.
