Sword Health, a digital musculoskeletal care startup, raised $25 million in a Series B funding round.
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.
Including the latest funding round, Sword Health has raised $50 million to date. The company intends to use the latest funds to enhance product capabilities, expand industry partnerships and drive adoption across the benefits management ecosystem with employers, health plans, and alliance partners.
According to the World Health Organization, musculoskeletal conditions are the leading cause of disability, with low back pain being its single greatest contributor. And these conditions are commonly linked to depression and other chronic health issues.
“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.”
According to Sword Health, its virtual musculoskeletal solution connects physical therapists and patients via wearable motion sensors and a tablet loaded with an AI-powered therapeutic exercise program. Its solution offers rehabilitation programs for chronic, acute, and post-surgical conditions of the lower back, shoulder, neck, knee, elbow, hip, ankle, wrist, and lungs.
The Sword Health digital therapist provides members live, dynamic feedback on their performance to perform exercises correctly and without pain at home. After every session, every member’s physical therapist receives data gathered by the digital therapist, and they can analyze their members’ performance, update their members’ programs, and give members 1:1 coaching and education through the companion mobile app.
The company works with insurers, health systems, and employers in the U.S., Europe, and Australia to make quality physical therapy more accessible to everyone.
Digital Health Wearable Sensors companies received $815 million during 2020 compared to $457 million in 2019, a 78% increase in the funding amount, according to the Mercom Digital Health Funding and M&A Report.
More recently, Hinge Health, a developer of wearable bands with motion sensors that help employees recuperate from musculoskeletal problems such as the lower back, knee, shoulder, and neck pain, closed a $310 million Series D funding round at a $3 billion valuation. Learn More