Key Takeaways
- • Sword Health secured a $4 billion valuation after raising $40 million in a funding round led by General Catalyst, according to Reuters, announced Tuesday, June 17, 2025.
- • Khosla Ventures, Comcast Ventures and Lince Capital also participated in the round, which the company says will fund expansion and development of its AI offerings.
- • The valuation marks a step up from the $3 billion Sword was assigned in a financing round last year, and the company has raised more than $300 million to date.
- • Sword's motion-sensor wearables use AI to deliver virtual physical rehabilitation and pain management, a model it argues lowers healthcare costs for users.
- • The deal reflects continued investor appetite for late-stage AI-driven startups in an otherwise muted private funding market.
Summary
Digital healthcare company Sword Health said on Tuesday that it has secured a valuation of $4 billion after raising $40 million in a funding round led by venture capital firm General Catalyst, according to Reuters. Khosla Ventures, Comcast Ventures and Lince Capital also participated. The company said the proceeds will help it expand and develop its artificial intelligence offerings.
Founded in Portugal, Sword provides motion-sensor wearables that use AI to offer virtual physical rehabilitation and pain management. The company argues that these solutions eventually lower healthcare expenses for users. Sword counts Transformation Capital and Founders Fund among its backers and has raised more than $300 million to date. It was valued at $3 billion in a financing round last year, which means the new valuation represents an increase of roughly 33%.
Reuters reported that late-stage startups leveraging AI have gained traction with venture capital firms, even as private funding has been muted overall. General Catalyst has been explicit about its push into healthcare companies with AI capabilities. Speaking on a Yahoo Finance podcast on Monday, General Catalyst CEO Hemant Taneja said the technology has the potential to transform global healthcare.
Chris Bischoff, managing director at General Catalyst and a Sword board director, said, "We back companies driving meaningful change in healthcare, and we believe Sword Health sits squarely at the forefront of that transformation." Earlier in the year, AI-focused startups Isomorphic Labs and Abridge also received venture financing.
Founded in Portugal, Sword provides motion-sensor wearables that use AI to offer virtual physical rehabilitation and pain management. The company argues that these solutions eventually lower healthcare expenses for users. Sword counts Transformation Capital and Founders Fund among its backers and has raised more than $300 million to date. It was valued at $3 billion in a financing round last year, which means the new valuation represents an increase of roughly 33%.
Reuters reported that late-stage startups leveraging AI have gained traction with venture capital firms, even as private funding has been muted overall. General Catalyst has been explicit about its push into healthcare companies with AI capabilities. Speaking on a Yahoo Finance podcast on Monday, General Catalyst CEO Hemant Taneja said the technology has the potential to transform global healthcare.
Chris Bischoff, managing director at General Catalyst and a Sword board director, said, "We back companies driving meaningful change in healthcare, and we believe Sword Health sits squarely at the forefront of that transformation." Earlier in the year, AI-focused startups Isomorphic Labs and Abridge also received venture financing.
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