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Sword Health raises $130 million and its valuation soars to $3 billion | TechCrunch

Jun 04, 2024 - techcrunch.com
AI-powered virtual physical therapy startup, Sword Health, has raised $30 million in a primary round and allowed employees to sell $100 million worth of equity to new and existing investors, including Khosla Ventures. This brings the company's valuation to $3 billion, a 50% increase from its $2 billion value in November 2021. The company's CEO, Virgílio Bento, stated that the funds will not be used for operations but will be kept in the bank to generate interest. The latest round brings Sword's total funding to $340 million.

Sword Health competes directly with another virtual therapy platform, Hinge Health, valued at $6.2 billion in October 2021. Bento has plans for an IPO for Sword, potentially in 2025, but there is no specific timeline. The company is also enhancing its AI, introducing a human-like voice for its genAI, Phoenix, to its musculoskeletal therapy and women’s pelvic health care therapy.

Key takeaways:

  • Sword Health, a virtual physical therapy startup, has raised $30 million and allowed employees to sell $100 million worth of equity to investors, including Khosla Ventures, increasing the company's valuation to $3 billion.
  • The company initially planned to do a $100 million secondary round, but due to oversubscription, it also decided to raise a $30 million primary round and update its valuation.
  • Sword Health is expected to be profitable by the end of the year and plans to use the $30 million raised not for operations but as a bank deposit to generate interest.
  • The company is enhancing its AI, introducing a human-like voice for its genAI, Phoenix, to its musculoskeletal therapy and women’s pelvic health care therapy, and has a potential plan for an IPO in 2025.
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