Sword Health Raises $30 Million in Funding and Increases Valuation to $3 Billion

Sydney Times

— 1 min read
Sword Health Raises $30 Million in Funding and Increases Valuation to $3 Billion

Introduction

Sword Health, an AI-powered virtual physical therapy startup, has recently raised $30 million in funding and increased its valuation to $3 billion. The funding round included a $100 million secondary round that allowed employees and early investors to sell shares, as well as a $30 million primary round.

Capital Infusion

  • The company's valuation has increased by 50% from its previous valuation of $2 billion.
  • The funding round was oversubscribed, demonstrating strong investor interest in the company.
  • The total funding raised by Sword Health now stands at $340 million.

Purpose of the Funding

  • The company is forecasting profitability by the end of the year.
  • The funding will be primarily used to showcase the company's growth and progress to clients and the market.
  • Sword Health plans to keep the $30 million in the bank to generate interest, rather than using it for operations.

Investor Landscape

  • Investors in Sword Health include Khosla Ventures, General Catalyst, BOND, and Founders Fund.
  • The strong investor support reflects confidence in the company's potential and growth prospects.

Competitive Landscape

  • Sword Health competes with virtual therapy platform Hinge Health, which was valued at $6.2 billion in October 2021.
  • Hinge Health recently laid off 10% of its workforce in preparation for potential profitability and an IPO.
  • Sword Health aims to continue growing and exploring the possibility of an IPO in the future.

Future Plans

  • The company is focused on enhancing its AI capabilities, including introducing a human-like voice for its virtual therapists.
  • The AI named Phoenix will enhance patient interactions and engagement with the platform.
  • Sword Health is committed to innovation and improving its services to provide better virtual therapy solutions.

In conclusion, Sword Health's recent funding round and increased valuation demonstrate the company's strong growth trajectory in the virtual physical therapy space. With a focus on innovation and expanding its AI capabilities, Sword Health is well-positioned for future success in the market.

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