Sword Health

Sword Health was founded in 2015 in Portugal by biomedical engineer Virgílio Bento and Márcio Colunas. The company initially developed digital rehabilitation tools that used wearable motion sensors and artificial intelligence (AI) to support physical therapy.

In 2016, Sword Health introduced a prototype system combining wearable motion sensors with an AI-driven digital therapy platform.{{Cite web |last=Hinchliffe |first=Tim |date=2018-04-16 |title=Porto's Sword Health Raises €3.7M to Develop New Digital Therapies |url=https://www.portugalstartups.com/2018/04/digital-therapies-sword-health/ |access-date=2025-02-26 |website=Portugal Startups |language=en}} In 2017, it conducted a feasibility study to evaluate the use of AI-assisted rehabilitation for motor task performance.{{cn|date=April 2025}} By 2018, Sword Health had launched pilot programs outside Portugal and secured funding to expand operations, including the establishment of a U.S. office.{{Cite web |last=O'Hear |first=Steve |date=2018-04-16 |title=Sword Health raises $4.6M for its digital physiotherapy solution |url=https://techcrunch.com/2018/04/16/sword-health/ |access-date=2025-03-03 |website=TechCrunch |language=en-US}}

In 2019, Sword Health received recognition at the UCSF Digital Health Awards in the Employer Wellness & Prevention category for its digital MSK (musculoskeletal) therapy solution.{{Cite web |title=2019 winners |url=https://www.digitalhealthhub.org/awards/2019/2019-winners |access-date=2025-03-03 |website=www.digitalhealthhub.org |language=en}}

Between 2020 and 2022, Sword Health introduced new product offerings and expanded its operations internationally. In 2020, the company raised $9 million in Series A funding to develop its AI-driven therapy platform and expand its clinical team.{{Cite web |last=Murdoch |first=Adrian |date=2020-03-09 |title=Portugal: SWORD Health raises US$9m additional Series A funding |url=https://www.investorsinhealthcare.com/articles/portugal-sword-health-raises-us9m-additional-series-a-funding/ |access-date=2025-02-26 |website=Investors in Healthcare |language=en-GB}} In 2021, it completed Series C and Series D funding rounds, raising $163 million and reaching a valuation of $2 billion.{{Cite web |date=2021-11-22 |title=Portuguese founded Sword Health brings in $163 million at $2 billion valuation |url=https://tech.eu/2021/11/22/portuguese-founded-sword-health-brings-in-163-million-at-2-billion-valuation/ |access-date=2025-03-03 |website=Tech.eu |language=en-GB}}{{Cite web |date=2021-11-22 |title=Há mais um "unicórnio" português. Chama-se SWORD Health e já vale 2 mil milhões de dólares |url=https://expresso.pt/economia/2021-11-22-Ha-mais-um-unicornio-portugues.-Chama-se-SWORD-Health-e-ja-vale-2-mil-milhoes-de-dolares-e26ffa08 |access-date=2025-03-03 |website=Expresso |language=pt}}

During this period, Sword Health developed a program to assess patient risk for surgery and offer non-surgical treatment options. It also partnered with employers and health plans to integrate its digital therapy programs into workplace health benefits and insurance networks.

Between 2022 and 2024, Sword Health introduced additional digital therapy programs addressing pelvic health, injury prevention, and surgery risk assessment. Thrive remained a key component of Sword Health’s musculoskeletal therapy offerings, while Move was developed for injury prevention and movement health.{{Cite web |last=Rehfeldt |first=Courtney |date=2024-06-04 |title=Sword Health Raises $130M at $3B Valuation for AI-Powered Healthcare |url=https://athletechnews.com/sword-health-raises-130m-at-3b-valuation-for-ai-powered-healthcare/ |access-date=2025-03-03 |website=Athletech News |language=en-US}}

In March 2022, Sword Health launched Bloom, a digital therapy program for pelvic health designed to support conditions such as postpartum recovery and pelvic floor dysfunction.{{Cite web |title=SWORD Health Gets Into Women's Health with a New Digital Therapeutic Targeting Pelvic Health |url=https://femtechinsider.com/sword-health-bloom-2/ |access-date=2025-02-26 |language=en-US}} In May 2023, the company introduced Predict, an AI-based tool intended to assess patient risk for musculoskeletal surgeries and identify non-surgical care options.{{Cite web |last=Torrence |first=Rebecca |title=Billion-dollar physical-therapy startup Sword Health shares the strategies it's using to drive growth ahead of a potential IPO |url=https://www.businessinsider.com/sword-health-strategy-focusing-on-ai-ahead-of-a-potential-ipo-2023-8 |access-date=2025-03-03 |website=Business Insider |language=en-US}}{{Cite web |last=ECO |date=2023-06-15 |title=Português Virgílio Bento integra top 50 dos CEO de tecnológicas de saúde |url=https://eco.sapo.pt/2023/06/15/portugues-virgilio-bento-integra-top-50-dos-ceo-de-tecnologicas-de-saude/ |access-date=2025-03-03 |website=ECO |language=pt-PT}} Later in the year, it published early research on the clinical effectiveness of AI-assisted digital therapy, including studies on patient engagement and intent to undergo surgery.{{Cite journal |last1=Areias |first1=Anabela C. |last2=Janela |first2=Dora |last3=Moulder |first3=Robert G. |last4=Molinos |first4=Maria |last5=Bento |first5=Virgílio |last6=Moreira |first6=Carolina |last7=Yanamadala |first7=Vijay |last8=Correia |first8=Fernando Dias |last9=Costa |first9=Fabíola |date=January 2024 |title=Applying AI to Safely and Effectively Scale Care to Address Chronic MSK Conditions |journal=Journal of Clinical Medicine |language=en |volume=13 |issue=15 |pages=4366 |doi=10.3390/jcm13154366 |doi-access=free |pmid=39124635 |pmc=11312972 |issn=2077-0383}}

At the end of 2023, Sword Health launched Atlas, a pain management platform available in 150 countries, incorporating clinically validated exercises and educational resources.{{Cite web |last=Health |first=SWORD |date=2023-11-29 |title=Sword Introduces Atlas, the World's First Global Pain-Fighting Solution |url=https://www.globenewswire.com/news-release/2023/11/29/2787980/0/en/Sword-Introduces-Atlas-the-World-s-First-Global-Pain-Fighting-Solution.html |access-date=2025-02-26 |website=GlobeNewswire News Room |language=en}} The company also introduced Academy, a digital education platform focused on pain management, and On-Call, a service providing 24/7 access to clinical specialists.{{Cite web |date=2023-08-07 |title=European tech companies are leading the fight against debilitating and chronic pain |url=https://tech.eu/2023/08/07/european-tech-companies-innovating-against-chronic-pain/ |access-date=2025-03-03 |website=Tech.eu |language=en-GB}} In 2024, the company released Phoenix, an AI-powered feature that applies natural language processing and computer vision to deliver real-time therapy feedback.{{Cite web |last=Capoot |first=Ashley |date=2024-06-04 |title=Medical startup Sword Health announces AI that patients can talk to |url=https://www.cnbc.com/2024/06/04/sword-health-announces-phoenix-conversational-ai.html |access-date=2025-02-26 |website=CNBC |language=en}}

That same year, Sword Health introduced Outcome Pricing, a payment model that adjusts costs based on treatment outcomes.{{Cite web |date=2024-10-02 |title=Sword Health's innovative approach to healthcare billing |url=https://www.benefitnews.com/news/sword-healths-innovative-approach-to-healthcare-billing |access-date=2025-02-26 |website=Employee Benefit News |language=en}} Several peer-reviewed studies during this period reported outcomes associated with Sword Health’s programs, including reductions in pain, anxiety, and surgery intent, as well as increased workplace productivity.{{Cite journal |last1=Janela |first1=Dora |last2=Costa |first2=Fabíola |last3=Molinos |first3=Maria |last4=Moulder |first4=Robert G. |last5=Lains |first5=Jorge |last6=Francisco |first6=Gerard E. |last7=Bento |first7=Virgílio |last8=Cohen |first8=Steven P. |last9=Correia |first9=Fernando Dias |date=2022 |title=Asynchronous and Tailored Digital Rehabilitation of Chronic Shoulder Pain: A Prospective Longitudinal Cohort Study |journal=Journal of Pain Research |volume=15 |pages=53–66 |doi=10.2147/JPR.S343308 |doi-access=free |issn=1178-7090 |pmc=8755939 |pmid=35035234}}{{Cite journal |last1=Janela |first1=Dora |last2=Costa |first2=Fabíola |last3=Areias |first3=Anabela C. |last4=Molinos |first4=Maria |last5=Moulder |first5=Robert G. |last6=Lains |first6=Jorge |last7=Bento |first7=Virgílio |last8=Scheer |first8=Justin K. |last9=Yanamadala |first9=Vijay |last10=Cohen |first10=Steven P. |last11=Correia |first11=Fernando Dias |date=August 2022 |title=Digital Care Programs for Chronic Hip Pain: A Prospective Longitudinal Cohort Study |journal=Healthcare |language=en |volume=10 |issue=8 |pages=1595 |doi=10.3390/healthcare10081595 |doi-access=free |pmid=36011251 |pmc=9408636 |issn=2227-9032}}{{Cite journal |last1=Janela |first1=Dora |last2=Areias |first2=Anabela C. |last3=Moulder |first3=Robert G. |last4=Molinos |first4=Maria |last5=Bento |first5=Virgílio |last6=Yanamadala |first6=Vijay |last7=Correia |first7=Fernando Dias |last8=Costa |first8=Fabíola |date=October 2024 |title=Recovering Work Productivity in a Population With Chronic Musculoskeletal Pain: Unveiling the Value and Cost-Savings of a Digital Care Program |url=https://journals.lww.com/joem/fulltext/2024/10000/recovering_work_productivity_in_a_population_with.19.aspx |journal=Journal of Occupational and Environmental Medicine |language=en-US |volume=66 |issue=10 |pages=e493–e499 |doi=10.1097/JOM.0000000000003191 |pmid=39016261 |issn=1076-2752|url-access=subscription |doi-access=free }} In late 2024, the company was recognized by Fast Company’s World Changing Ideas Awards for innovation in digital healthcare.{{Cite web |last=Salo |first=Daniel |date=2025-03-03 |title=World Changing Ideas 2024 {{!}} Fast Company |url=https://www.fastcompany.com/world-changing-ideas/list |website=Fast Company}}

In October 2024, Sword Health reduced its workforce by 17%, affecting treatment-facing clinicians as part of a company-wide restructuring.{{Cite web |last=Torrence |first=Rebecca |title=$3 billion startup Sword Health cuts some physical therapists as it ramps up AI to treat more patients |url=https://www.businessinsider.com/3-billion-sword-health-cuts-physical-therapists-2024-11 |access-date=2025-02-26 |website=Business Insider |language=en-US}} Sword Health cited efficiency and scalability as reasons for the restructuring. Reports noted that the shift was consistent with broader trends in the digital health sector, where companies increasingly incorporate AI into care models to optimize clinical workflows.{{Cite web |date=2024-11-11 |title=$3 billion startup Sword Health cuts some physical therapists as it ramps up AI to treat more patients |url=https://www.yahoo.com/tech/3-billion-startup-sword-health-185246330.html |access-date=2025-03-03 |website=Yahoo Tech |language=en-US}}

In 2025, Sword Health acquired Surgery Hero, a UK-based digital health company specializing in prehabilitation, an approach designed to help patients prepare for surgery with the goal of improving post-surgical recovery. Following the acquisition, Sword Health partnered with 18 NHS trusts in the UK to integrate digital prehabilitation services into existing healthcare programs.{{Cite web |last=Weitzman |first=Aaron |date=2025-01-23 |title=Digital musculoskeletal care company Sword Health breaks into the U.K. with acquisition of Surgery Hero |url=https://www.axios.com/pro/health-tech-deals/2025/01/23/sword-health-acquires-uks-surgery-hero-to-accelerate-global-expansion |access-date=2025-02-26 |website=Axios |language=en}}{{Cite web |last=Meireles |first=Rita |date=2025-01-23 |title=Sword Health reforça presença no Reino Unido ao adquirir a Surgery Hero |url=https://www.forbespt.com/sword-health-reforca-presenca-no-reino-unido-ao-adquirir-a-surgery-hero/ |access-date=2025-03-03 |website=Forbes Portugal |language=pt-PT}}

In July 2024, A2 Academy ("A2") filed a lawsuit against Sword Health asserting that A2 was owed a 5% ownership stake in the company, pursuant to an agreement associated with Sword's participation in its accelerator program from 2014-2015. A2 Academy LLC v. Sword Health, Inc.

As of 2024, Sword Health has raised over $340 million across multiple funding rounds.{{Cite web |last=Madden |first=Blake |date=2024-06-13 |title=No Growing Pains: Sword Health's $3 Billion Journey to becoming an AI Care Company, and the red-hot virtual MSK space |url=https://hospitalogy.com/articles/2024-06-13/sword-health-3b-valuation-ai-care-virtual-msk/ |access-date=2025-03-03 |website=Hospitalogy |language=en-US}}

• Seed Round (2018): $4.6 million to further develop its digital therapy platform.
• Series A (2019): $8 million, led by Khosla Ventures, to expand into the U.S. market.{{Cite web |last=Loritz |first=Mary |date=2019-04-17 |title=Porto-based startup SWORD Health raises €7 million to scale its digital physical therapist in the US |url=https://www.eu-startups.com/2019/04/porto-based-startup-sword-health-raises-e7-million-to-scale-its-digital-physical-therapist-in-the-us/ |access-date=2025-03-03 |website=EU-Startups |language=en-US}}
• Series B (2020): $25 million to scale operations and advance AI-powered therapy solutions.{{Cite web |last=Ferreira |first=Victor |date=2021-02-01 |title=Sword Health obtém 20 milhões e contrata 100 pessoas este ano |url=https://www.publico.pt/2021/02/01/economia/noticia/sword-health-obtem-25-milhoes-dolares-contrata-100-pessoas-ano-1948824 |access-date=2025-03-03 |website=PÚBLICO |language=pt}}{{Cite web |last=Hernbroth |first=Megan |title=We got an exclusive look at the presentation that had VCs clamoring to invest in a startup taking a new approach to physical therapy |url=https://www.businessinsider.com/exclusive-see-msk-startup-sword-health-series-b-pitch-deck-2021-2 |access-date=2025-03-03 |website=Business Insider |language=en-US}}
• Series C (June 2021): $85 million, bringing the company’s valuation to $1.8 billion.{{Cite web |last=Mascarenhas |first=Natasha |date=2021-06-30 |title=SWORD Health closes on $85 million Series C for virtual MSK care |url=https://techcrunch.com/2021/06/30/sword-health-closes-on-85-million-series-c-for-virtual-msk-care/ |access-date=2025-02-26 |website=TechCrunch |language=en-US}}{{Cite web |date=2021-06-30 |title=Startup portuguesa de fisioterapia digital capta investimento de 85 milhões de dólares |url=https://expresso.pt/economia/2021-06-30-Startup-portuguesa-de-fisioterapia-digital-capta-investimento-de-85-milhoes-de-dolares-8fce9c8f |access-date=2025-03-03 |website=Expresso |language=pt}}
• Series D (December 2021): $163 million, led by investors including General Catalyst, BOND, and Khosla Ventures, increasing valuation to $2 billion.
• Series E (June 2024): $30 million, raising the company’s valuation to $3 billion. The funding was allocated toward company operations and business development.

• List of unicorn startup companies
• Telerehabilitation
• Digital Health
• Telemedicine
• List of digital therapeutics companies
• Musculoskeletal disorder
• Artificial intelligence in healthcare

• [https://swordhealth.com/ Official website]

Category:Health care companies