Sword Health, a leading digital health startup, has raised $40 million in a recent funding round, achieving a staggering $4 billion valuation. The New York City-based company, known for its AI-powered virtual physical therapy platform, announced the capital infusion on June 17, 2025, as a strategic move to bolster its growth and expansion plans.
The funding round was led by General Catalyst, a prominent venture capital firm, and is intended to update the company's valuation while financing potential acquisitions. This comes on the heels of a significant $130 million Series E round in 2024, which had already boosted Sword Health's valuation to $3 billion.
In addition to the financial milestone, Sword Health revealed its expansion into mental health care with the launch of an AI-powered solution named Mind. This marks the company's first venture into this sector, aiming to address growing demand for accessible mental health support through innovative technology.
Despite the rapid growth, Sword Health has decided to push its IPO plans to at least 2028. The company stated that the delay allows for further maturation of its business model and strategic positioning in the competitive digital health market.
The latest funding and expansion into mental health services underscore Sword Health's commitment to transforming healthcare delivery. By leveraging AI, the company continues to pioneer solutions that enhance patient outcomes across physical and mental wellness domains.
As Sword Health scales its operations, industry observers anticipate more acquisitions and partnerships that could further solidify its position as a leader in the digital health space. The coming years will be critical as the company prepares for an eventual public offering.
Maria Lourdes
