Sword Health

Overview

Sword Health is a leading digital health company specializing in providing virtual care solutions primarily focused on musculoskeletal (MSK) conditions and mental health through the use of advanced artificial intelligence (AI) technologies. Founded in 2015 by Virgílio Bento, Sword Health aims to reduce pain and improve outcomes by combining AI with human clinical expertise. The company is headquartered in New York City and has raised significant capital, reaching a $4 billion valuation as of 2025. Key investors include General Catalyst, Khosla Ventures, and Comcast Ventures.

Recent Developments

June 2025: Sword Health announced a $40 million funding round, led by General Catalyst, boosting its valuation to $4 billion. This funding will help accelerate its expansion into new healthcare verticals and support ongoing M&A initiatives.
June 2025: Sword Health launched "Mind," an AI-powered mental health solution. Leveraging AI and licensed clinicians, Mind offers a proactive and always-on mental health solution, aiming to revolutionize traditional episodic talk therapy.
April 2025: Ann Gallo was appointed to Sword Health's Board of Directors, enhancing the company's strategic leadership in healthcare innovation.
June 2024: Sword Health raised $130 million in a Series E funding round, which valued the company at $3 billion at that time.
2023: Sword Health delivered 1.5 million AI Care sessions, bringing its cumulative total to 2.5 million since its launch, solidifying its status as the largest provider of AI-driven care.
2023: An independent study validated Sword Health as a provider delivering a 301.2% return on investment per member annually, marking the highest in the healthtech industry.

Attribute	Information
Founding Date	2015
Headquarters	New York City, USA
Founders	Virgílio Bento
Revenue	$240 million (2025)
Profits	Not publicly disclosed
Key Investors	General Catalyst, Khosla Ventures, Comcast Ventures
Industry	Digital Health, AI-Driven Healthcare
Number of Employees	Not publicly disclosed

Early History

Sword Health was established in 2015 by Virgílio Bento in Portugal. Initially focused on providing digital solutions for physical therapy, the company set out to tackle chronic pain management and recovery challenges. Early on, Sword Health pioneered its flagship "AI Care" model that integrates clinical expertise with AI-driven capabilities to offer accessible and scalable care remotely. This innovative approach rapidly gained traction, enabling them to expand their operations beyond Portugal and enter the U.S. market.

Company Profile and Achievements

Sword Health's business model is anchored in its AI Care system, which combines the use of AI with human clinical expertise to deliver virtual care for various health conditions. Some of the major achievements include:

Launched as a virtual physical therapy provider focused on MSK conditions, Sword Health quickly expanded its offerings to include pelvic health and mental health services.
Introduced Phoenix, its AI therapist, and M-band, a wearable device, to enhance real-time, contextual patient care.
Developed partnerships with major U.S. health insurers like Highmark Health, which projected significant healthcare savings through Sword Health’s solutions.
Reported substantial member engagement statistics, with 92% participation rates and significant reductions in surgical and therapy-related expenses for members.
By 2023, Sword Health had successfully transitioned 64% of its members to low-risk surgical candidates, demonstrating effective pain management and cost savings across its programs.

Current Operations and Market Position

Sword Health currently operates as a key player in the digital health space, offering a wide range of AI-powered healthcare solutions. Its market position is bolstered by the continuous enhancement of its AI models and expanding service offerings across different health conditions. The company’s strategic initiatives for 2025 involve increasing M&A activities and extending its reach in mental health care through the Mind platform. Sword Health remains focused on scalable healthcare solutions, backed by significant VC funding and strategic market partnerships.

Conclusion

Sword Health stands out as a transformative force in the digital health industry, pioneering the use of AI to drive accessible, scalable, and effective care solutions. By continually expanding its AI-driven healthcare model, the company successfully addresses critical healthcare challenges, ranging from physical pain management to mental health access. With a solid foundation and ambitious plans for future growth, including a potential IPO by 2028, Sword Health is well-positioned to influence further advancements in global healthcare delivery.