Sword Well being nabs $40M at $4B valuation, pushes IPO plans to no less than 2028
Sword Well being, an AI-powered digital well being startup, has raised $40 million at a $4 billion valuation, a 33% soar from the $3 billion price ticket it earned only a 12 months in the past. The funding was led by returning investor, Common Catalyst.
Regardless that 10-year-old Sword Well being is cash-flow constructive, its CEO and founder, Virgílio Bento, instructed TechCrunch that he opted to boost 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 companies, 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 mentioned.
Bento’s purpose is for Phoenix, Sword’s AI care specialist, to increase distant healthcare past musculoskeletal ache and pelvic ground care to quite a few situations, similar to cardiovascular care, gastroenterological well being, and speech remedy.
“I wish to IPO when I’ve plenty of totally different proof factors at scale in many alternative care verticals — so possibly 2028,” he mentioned.
In current months, Bento has launched into what he calls an “instructional journey” to find out about managing a public firm, talking with CEOs of varied public corporations and bankers.
“On the finish of that schooling interval, I noticed that when you ask me why we shouldn’t IPO, I can provide you 10 causes. For those who ask me why we should always IPO, I can’t discover one cause,” he mentioned.
Bento isn’t satisfied by the standard causes for an IPO, similar to model constructing or capital entry. Pointing to Ikea and Lego as examples of profitable non-public corporations, he mentioned robust startups can nonetheless safe ample non-public capital, citing Databricks’ large $10 billion elevate.
Liquidity for workers and early shareholders can be simply attainable for personal corporations because of secondary markets, Bento mentioned, including that Sword will seemingly launch a young provide subsequent month.
Sword expects to boost extra capital subsequent 12 months, Bento mentioned. 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 feel you may think about the kind of elevate we’re going to do subsequent 12 months, which might be going to be $50 million at $5 billion,” he mentioned. “I just like the numerical symmetry. I feel it’s enjoyable.”
The newest spherical brings Sword’s whole funding to $380 million. Different individuals within the new spherical embrace Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Indico Capital and Shilling.