Sword Health Raises $40M at $4B Valuation, Plans IPO After 2028

Sword Health, a digital health startup specializing in AI-powered virtual physical therapy and pain management, has raised $40 million in a funding round led by General Catalyst, bringing its valuation to $4 billion. The company, which is cash-flow positive, plans to use the capital to support global expansion, accelerate mergers and acquisitions, and further develop AI models across various care areas, including a new mental health solution called Mind that combines AI and licensed clinicians to provide continuous, personalized care for conditions such as mild depression and anxiety. CEO Virgílio Bento has postponed IPO plans to possibly 2028, aiming to build proof points across multiple healthcare verticals before going public. Sword Health’s technology integrates motion sensor wearables and AI to extend remote healthcare beyond musculoskeletal and pelvic health into areas like cardiovascular and gastroenterological care. Backed by investors such as Khosla Ventures and Comcast Ventures, Sword Health is positioned at the forefront of AI-driven healthcare transformation, with a focus on expanding access, improving outcomes, and lowering costs globally. The company’s growth and innovation occur amid a recovering digital health market following post-pandemic challenges and notable IPOs of peers like Hinge Health and Omada Health.