Sword Health Secures $40M Funding at $4B Valuation, Launches Mental Health Platform

Sword Health, the New York-based digital health company that positions itself as transforming healthcare from human-first to AI-first, has announced a $40 million funding round that brings its total funding to $380 million and valuation to $4 billion. The round was led by existing investor General Catalyst, with participation from Comcast Ventures, Oxy Capital, Khosla Ventures, Indico Capital, Armilar, Lince Capital and Shilling.

The funding announcement coincides with the company's strategic expansion into mental health through its new offering, Mind. This platform combines AI technology with mental health specialists to provide round-the-clock care, marking a significant diversification from Sword's core physical therapy programs for pelvic health and muscle and joint pain.

Mind will feature the M-band, a proprietary wearable device designed to detect early indicators of depression and anxiety. According to the company, this technology will enable proactive outreach by Mind clinicians, potentially identifying mental health concerns before they escalate.

The fresh capital will support Sword's global expansion plans, further development of its AI models across various care areas, and acceleration of its mergers and acquisitions strategy. Company founder and CEO Virgilio Bento reportedly told TechCrunch that Sword may pursue an initial public offering by 2028.

"We've rebuilt care delivery from the ground up—replacing a century-old, labor-intensive model with AI that removes barriers to world-class care for everyone who needs it," Bento said in a statement. "This funding is a milestone that allows us to deepen our foundational AI research and to accelerate our expansion into new healthcare verticals like mental health—a field still dominated by unscalable and ineffective models—bringing truly life-changing care to millions who struggle with mental health around the world, the same way we did it for millions with physical pain."

The company's growth trajectory has been notable over recent years. The current valuation represents a $1 billion increase from its $130 million Series E funding round last year, which valued the company at $3 billion. In 2021, Sword raised $163 million in Series D funding, with an additional $26 million in secondary transactions pushing its valuation to $2 billion at that time.

Sword's acquisition activity includes the January purchase of UK-based Surgery Hero in an all-equity transaction. Surgery Hero's digital health tools for enhancing surgical outcomes have been integrated into Sword's platform, with the team joining the parent company.

Beyond its core physical therapy offerings, Sword provides physical health education, pain-fighting exercises, and access to clinical pain specialists. The company states its AI tools can detect and engage with high-risk members to help prevent costs associated with unnecessary surgeries.

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