Sword Health Raises $30 Million in New Funding Round, Reaches $3 Billion Valuation
Sword Health, the AI-powered virtual physical therapy startup, has successfully raised $30 million in a new funding round. This financial boost coincides with the company’s decision to allow employees and early investors to sell $100 million worth of equity to both new and existing investors, including Khosla Ventures.
This strategic move has elevated Sword Health’s valuation to $3 billion, marking a 50% increase from its $2 billion valuation during its Series D round in November 2021.
Founded nine years ago, Sword Health has been at the forefront of transforming physical therapy through its innovative use of AI technology. The company’s digital therapy solutions aim to provide more accessible and effective care for individuals dealing with musculoskeletal conditions.
The recent funding round underscores the growing confidence in Sword Health’s approach and the broader potential of AI-driven healthcare solutions.
Virgílio Bento, CEO and founder of Sword Health, revealed to TechCrunch that the company originally planned to conduct a $100 million secondary round. This round would enable employees and early investors to sell their shares, providing them with significant liquidity.
However, due to the overwhelming demand and oversubscription in the secondary round, Sword Health opted to also raise a $30 million primary round, thereby updating its valuation and further fueling its growth trajectory.
“Our primary focus has always been on improving patient outcomes through cutting-edge technology,” Bento said. “The enthusiastic response from investors highlights the trust in our mission and the efficacy of our solutions.”
The funds from the primary round are expected to be used to enhance Sword Health’s platform, expand its market presence, and drive further innovation in virtual physical therapy. This infusion of capital will also support the company’s ongoing efforts to scale its operations and reach more patients in need of effective and convenient physical therapy solutions.
Khosla Ventures, a prominent venture capital firm, remains a key supporter of Sword Health. Their continued investment signals strong endorsement of the company’s vision and strategic direction.
As Sword Health continues to grow, it remains dedicated to revolutionizing the physical therapy landscape with AI-driven solutions, aiming to deliver superior care and improve the quality of life for millions worldwide.
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