Digitial musculoskeletal therapy provider Sword Health has raised $163 million in a Series D funding round, now giving the Porto-founded company a $2 billion valuation. The oversubscribed primary funding round closed at $163 million providing a valuation of $1.8 billion, however, a secondary funding saw $26 million more headed Sword Health’s way, propelling the valuation north of $2 billion. In total, the company has raised $320 million.
Launched in 2015, the company aims to reduce, if not eliminate musculoskeletal pain by pairing its members with a licensed physical therapist. The company intends to use a portion of the funding to create 300 new positions over the next few months, primarily in operations, marketing, tech, and people management. Likewise, Sword will continue to develop and promote its services for members, self-insured employers, and health plans.
Over the past year, the company has seen a valuation increase of 20x, and its client count increase 12x. With this round, Sword Health becomes one of the fastest-growing European healthtech unicorns.
“I started Sword after a traumatic personal experience where I saw first-hand the challenges that families face when they have to recover a loved one,” commented CEO Virgílio Bento. “It’s been truly humbling to see the impact Sword is having on thousands of members across the globe.”
Sword’s Series D round was led by Sapphire Ventures, with participation from new investors Sozo Ventures, Willoughby Capital, ADQ, and Localglobe, and from all major existing investors including General Catalyst, Khosla Ventures, Founders Fund, Bond, Transformation Capital, and Green Innovations.
“Sword Health’s approach to resolving MSK disorders is truly differentiated. Their unique PT + Digital Therapist model which includes an FDA-listed device has gained significant market acceptance evidenced by their 12x customer growth,” said Rajeev Dham, managing director at Sapphire Ventures. “Through our market and customer work, we found that SWORD is providing tangible clinical outcomes to drive healthier, happier lives for individuals, and meaningful cost-savings for customers – a winning approach.”