Sword raises $25M Series B to expand access to digital MSK care

The company’s funding doubled to $50 million after a year of rapid growth.

Sword Health, the world’s fastest growing virtual musculoskeletal (MSK) care provider, has raised a $25 million financing round, bringing Sword’s cumulative fundraising to $50 million. The round was led by Todd Cozzens, Managing Partner at Transformation Capital and former healthcare investor at Sequoia Capital. Existing investors Khosla Ventures, Founders Fund, Green Innovations, Vesalius Biocapital and Faber also participated.

Sword Health achieved significant commercial success in the last year with eight-fold revenue growth and a nearly five-fold increase in active users in 2020, making it one of the fastest growing providers of virtual musculoskeletal care delivery. The Company will use the funds to enhance product capabilities, expand industry partnerships and drive adoption across the benefits management ecosystem with employers, health plans and alliance partners.

“This was a breakout year for Sword Health,” said Virgilio Bento, founder and CEO of Sword Health. “We grew our client footprint and revenue dramatically and were selected in 75 percent of evaluations we participated in by employers searching for a better way to provide musculoskeletal care to their populations. Sword Health is now the fastest growing provider of musculoskeletal care, and this new round of funding will accelerate our mission to provide high-quality, accessible and effective musculoskeletal care to over two billion people worldwide.”

According to the World Health Organization, MSK conditions are the world’s leading cause of disability, with low back pain being its single greatest contributor. These conditions significantly impact one’s ability to work and are commonly linked to depression and other chronic health issues. Demand for digital physical therapy solutions to MSK issues skyrocketed during the pandemic and, according to the Business Group on Health, will continue to grow exponentially through 2023.

“We invested in Sword Health because the Company is solving one of the world’s leading health issues today, musculoskeletal pain, with the most clinically comprehensive MSK digital health solution,” said Todd Cozzens, Co-Founder and Managing Partner of Transformation Capital. “Our market research with employers, payers and industry partners confirmed that Sword Health offers the leading MSK virtual therapy standard of care for the broadest set of conditions.”

Thrive, Sword's AI pain care solution, pairs every member with a dedicated Pain Specialist holding a Doctor of Physical Therapy degree, who designs their care plan and monitors their progress throughout. Sword's proprietary Vision AI+ technology delivers real-time movement guidance through the Sword app, while Phoenix, Sword's AI Care Specialist, supports the member during each session. Thrive is the only digital solution clinically-proven to outperform traditional physical therapy in post-surgical care,¹ and covers the full spectrum of MSK conditions, including chronic, acute, and post-surgical care across the lower back, shoulder, neck, knee, elbow, hip, ankle, and wrist.

“We selected Sword Health after a robust evaluation process because we believe they provide the safest, most engaging and most effective MSK treatment on the market," said Jen Lamons, director of health and welfare at Concordia Plan Services. "They have been a dream to work with, and they have exceeded our expectations over the last year. I can’t wait to see what this additional funding will ultimately provide our members and the rest of the world."

About Sword Health

Sword Health is the world's largest AI Care Platform for MSK health, combining clinician expertise with AI to deliver personalized, accessible care at scale. Thrive, Sword's AI pain care solution, uses Vision AI technology in the Sword app to provide real-time movement guidance from home. Members connect with a Pain Specialist holding a Doctor of Physical Therapy degree who designs their program and monitors their progress, while Phoenix, Sword's AI Care Specialist, guides each session.

About Transformation Capital

Transformation Capital is dedicated exclusively to supporting entrepreneurs building transformational digital health and technology-enabled service businesses. The firm invests at the commercial stage in companies that serve stakeholders across the healthcare system and was founded on the premise that healthcare requires a highly focused investment approach combining deep industry expertise and connectivity. Transformation is an investor in companies such as Health Catalyst, LetsGetChecked, PatientPing, PatientPop, Plushcare, Olive and Vera Whole Health.