- Sword Health raised $30 million and sold $100 million worth of equity to investors, boosting its valuation to $3 billion.
- The company, already profitable, raised funds to show growth and reward early employees amidst challenging market conditions.
- The company is enhancing its AI with a human-like voice for better patient involvement in its virtual therapies.
OUR TAKE
This extra $130 million will help Sword Health demonstrate in the real world what many have been saying. That will mean happier customers, and even happier investors.
—Audrey Huang, BTW reporter
Sword Health, a virtual physical therapy startup, has secured an additional $30 million in funding and allowed employees to sell $100 million in equity, increasing its valuation to $3 billion. While making profits, the company sought to update its valuation to show growth and reward its team.
Sword Health’s successful fundraising
Sword Health, a startup using AI for virtual physical therapy, has successfully raised $30 million and enabled a $100 million secondary round for employees and early investors to sell shares. This move not only reflects the company’s robust financial situation but also serves as a reward for dedicated team members, particularly those who joined in the early stage.
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The company’s updated valuation
Despite predicting profitability by year-end, the startup chose to raise funds and update its valuation to $3 billion, a significant increase from its previous $2 billion valuation. This strategic decision was influenced by the challenging fundraising environment of 2024 and the desire to send a signal of growth and stability to both investors and its customers.
Enhancing AI for better patient experience
To enhance user experience, experience is introducing a human-like voice, named Phoenix, to its AI-driven therapies. This innovation aims to improve the interaction quality between patients and virtual therapists, making the therapy sessions more effective and engaging.
