Sword Health is an AI-powered digital health company that began as a virtual physical therapist and has expanded into pelvic health and mental health services. Its core product includes an AI care specialist called Phoenix, which the company aims to extend to cardiovascular, gastroenterological, and speech therapy care verticals. Sword is cash-flow positive and reporting a $240 million annual revenue run rate. The company raised capital to update its valuation and to have funds available for strategic acquisitions. CEO Virgílio Bento is delaying near-term IPO plans until he can show proof points at scale across multiple care verticals. Sword plans a likely tender offer next month and expects to raise additional capital next year. Sword Health operates an AI Care platform that delivers clinician-informed, conversational and real-time feedback-driven care for back, joint and muscle pain and women's pelvic health. The company launched its first AI-based care solution in 2015 and has delivered over three million AI sessions to members to date, with availability to more than 10,000 employers across three continents. Sword recently introduced Phoenix, an AI Care Specialist that will be integrated across its platform beginning with Thrive (physical pain) and then Bloom (women’s pelvic health) during 2024. The firm says it nearly tripled revenue in the prior year and claims a 70% win rate in competitive evaluations while holding the majority of industry patents. Management frames Phoenix as the largest technology leap to date and part of plans to expand AI Care into new markets and categories. The company states its mission is to free two billion people from pain by scaling AI-powered access to high-quality care. Sword Health is a Porto-founded digital musculoskeletal therapy provider that pairs members with licensed physical therapists and a digital therapist and offers an FDA-listed device to address musculoskeletal (MSK) disorders. Launched in 2015, the company aims to reduce or eliminate MSK pain for members, self-insured employers, and health plans. Over the past year Sword reported a 20x increase in valuation and a 12x increase in client count. Financially, Sword closed an oversubscribed $163 million primary Series D and a $26 million secondary that pushed its valuation north of $2 billion, bringing total capital raised to $320 million. The company plans to use part of the funding to create 300 new positions primarily in operations, marketing, technology, and people management, and to continue developing and promoting its services. Investors and company leadership have pointed to Sword’s PT + Digital Therapist model and reported clinical outcomes as drivers of market acceptance and cost savings. SWORD Health provides a virtual musculoskeletal care platform that connects patients to telemedicine physical therapists and supplies tablets plus motion sensors to power a Digital Therapist that delivers real-time feedback. The Digital Therapist offers thousands of feedback messages and scores exercises, guiding regimens that typically take 20–25 minutes. The company sells to insurers, health systems, and employers across the United States, Europe, and Australia. Founded in 2015 and only 18 months in market, SWORD reports treated patients up 1,000% year over year and 600% year-over-year revenue growth. Management says it will reinvest gross profit into building the platform and plans to use new capital to grow the business rather than focus on near-term profitability. Sword Health offers a virtual musculoskeletal solution centered on its FDA-listed Digital Therapist, which connects in-house Doctors of Physical Therapy to members via wearable motion sensors and a tablet running an AI-powered therapeutic exercise program. The clinically proven platform delivers rehabilitation programs for chronic, acute, and post-surgical conditions across the lower back, shoulder, neck, knee, elbow, hip, ankle, wrist and lungs. Led by founder and CEO Virgilio Bento, the company plans to use the new capital to enhance product capabilities and expand industry partnerships. It aims to drive adoption across the benefits management ecosystem with employers, health plans and alliance partners. The company has raised a cumulative $50M to date. Sword Health raised $25M in a Series B to support these initiatives.

Total raised

$465M

Funding rounds

8

Latest round

Equity

Latest activity

Jun 2025