Digital musculoskeletal company Sword Health has secured $40 million in funding and launched a new mental health solution called Mind that combines AI with licensed clinicians, the company announced on Tuesday.
New York City-based Sword Health leverages AI to address muscle and joint issues from the neck down to the ankle. It provides access to digital physical therapy, physical health education, pelvic care support, on-demand clinical pain specialists and more. The company serves both employers and health plans.
The $40 million funding round was led by General Catalyst and included support from Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Indico Capital and Shilling. In total, the company has raised $300 million. The most recent round brings its valuation to $4 billion.
“At General Catalyst, we back companies driving meaningful change in healthcare, and Sword Health sits squarely at the forefront of that transformation,” said Chris Bischoff, managing director at General Catalyst and Sword board director, in a statement. “By fusing sophisticated AI with human clinical expertise, Sword is re-imagining the entire care continuum—from physical pain care to today’s launch of Mind for mental health — expanding access, improving outcomes, and lowering costs at global scale.”
The financing will be used in three ways, according to Virgilio Bento, founder and CEO of Sword Health. It will accelerate its M&A activity, support its global expansion and help it expand to other areas of care.
The financing comes shortly after fellow musculoskeletal company Hinge Health went public, as well as chronic condition company Omada Health, which also offers some joint and muscle health support. Some health tech experts have predicted that Sword Health could file for an IPO soon as well. However, Bento told MedCity News that the company doesn’t plan to pursue an IPO in the foreseeable future.
“We are focused on making sure we execute our vision, which is now to expand beyond physical care, into other areas of care with our AI care model,” he said. “Continuing to remain private for the months and years to come allows us to focus on what matters the most, which is being able to continuously innovate, support more and more members in their path to full recovery, and better serve our clients by providing more ROI. We don’t want to be distracted with anything else.”
Sword Health also unveiled a new mental health solution called Mind, which is available to patients 24/7. It includes an AI therapist called Phoenix, as well as access to mental health professionals when human support is needed. In addition, it offers a wearable device called the M-band, which can detect indicators of depression and anxiety and prompt Mind clinicians to reach out.
“Traditional therapy, based on episodic 40-minute sessions often weeks apart, reflects a largely outdated and one-dimensional view that can’t keep up with the round-the-clock reality of mental health,” Bento said. “This captures only fragments of a person’s life, missing the everyday factors that shape mental wellbeing such as sleep, stress, relationships, and environment. … This model shifts care from reactive to proactive, delivering continuous support and removing barriers to access.”
Looking ahead, the company’s goal “is to use artificial intelligence to heal the world across all dimensions in the healthcare world. This expansion into mental health is another step in that direction,” Bento added.
Picture: Feodora Chiosea, Getty Images
