SWORD Health, a virtual musculoskeletal care platform founded in 2015, announced today that it has raised an $85 million Series C funding round led by General Catalyst. Other participating investors included BOND, Highmark Ventures, BPEA, Khosla Ventures, Founders Fund, Transformation Capital, and Green Innovations. The funding comes months after the company raised a $25 million Series B round – which, put differently, means that the New York-based company has now raised $110 million across six months.
CEO and founder of SWORD Health, Virgílio Bento, said that company was not actively having conversations with external VCs when it raised the round. The Series C closed within three weeks of the first anchor investor’s check.
“Given the interest of the market, given the valuations, and given the ability to bring other stellar investors [who] can help us grow even faster and more efficiently – that’s why we decided to raise again,” he said.
SWORD Health’s massive tranche of capital comes as the world of MSK digital health startups continues to boom, thanks to the broad rise of virtual care. Venture-backed startups such as Kaia Health, which saw its business grow by 600% in 2020 and Hinge Health, which was last valued at $3 billion, are hitting growth stage. SWORD Health, while founded in 2015, has only been in the market for 18 months. Bento declined to share the company’s exact valuation, but he confirmed that it was north of $500 million.
MSK conditions, which can range from a sprained ankle to a disc compression, are diverse and, unfortunately, universally felt. The sheer expansiveness of the condition has triggered a crop of entrepreneurs to create solutions that help people avoid surgery or addictive opioids, two of the mainstream ways to deal with MSK conditions.
SWORD Health’s solution looks like this: The platform connects consumers to a virtual physical therapist who is accessible via traditional telemedicine. Beyond that, the company gives each consumer a tablet and motion sensors. The consumers are promoted to go through the motions, and get feedback and tips through a SWORD Health Digital Therapist.
Image Credit: SWORD Health