Sword Well being, an AI-powered digital well being startup, has raised $40 million at a $4 billion valuation, a 33% leap from the $3 billion price ticket it earned only a 12 months in the past. The funding was led by returning investor, Basic Catalyst.
Despite the fact that 10-year-old Sword Well being is cash-flow constructive, its CEO and founder, Virgílio Bento, instructed TechCrunch that he opted to lift extra capital for 2 key causes: to replace the corporate’s valuation, and have funds available for strategic acquisitions.
Sword Well being, which started as a digital bodily therapist and has since expanded into providing pelvic well being and psychological well being providers, had beforehand thought of a near-term IPO. Bento instructed TechCrunch final 12 months {that a} 2025 itemizing was a chance.
Regardless of the current profitable IPOs of counterparts Hinge Well being and Omada, and Sword’s wholesome $240 million annual income run charge, Bento is reconsidering his IPO plans.
“It’s going to be a lot later than everybody expects,” he stated.
Bento’s purpose is for Phoenix, Sword’s AI care specialist, to increase distant healthcare past musculoskeletal ache and pelvic flooring care to quite a few circumstances, reminiscent of cardiovascular care, gastroenterological well being, and speech remedy.
“I need to IPO when I’ve a number of completely different proof factors at scale in many alternative care verticals — so perhaps 2028,” he stated.
In current months, Bento has launched into what he calls an “academic journey” to study managing a public firm, talking with CEOs of assorted public corporations and bankers.
“On the finish of that schooling interval, I noticed that if you happen to ask me why we shouldn’t IPO, I can provide you 10 causes. In case you ask me why we should always IPO, I can not discover one purpose,” he stated.
Bento isn’t satisfied by the standard causes for an IPO, reminiscent of model constructing or capital entry. Pointing to Ikea and Lego as examples of profitable personal corporations, he stated robust startups can nonetheless safe ample personal capital, citing Databricks’ huge $10 billion increase.
Liquidity for workers and early shareholders can also be simply attainable for personal corporations because of secondary markets, Bento stated, including that Sword will probably launch a young supply subsequent month.
Sword expects to lift extra capital subsequent 12 months, Bento stated. He’s even predicting the scale and valuation of the corporate’s subsequent funding spherical.
“Final 12 months, we raised $30 million at a $3 billion valuation. This 12 months, we did $40 million at $4 billion. I believe you’ll be able to think about the kind of increase we’re going to do subsequent 12 months, which might be going to be $50 million at $5 billion,” he stated. “I just like the numerical symmetry. I believe it’s enjoyable.”
The newest spherical brings Sword’s complete funding to $380 million. Different individuals within the new spherical embrace Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Indico Capital and Shilling.
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