Sword Well being nabs $40M at $4B valuation, pushes IPO plans to at the least 2028

Sword Well being, an AI-powered digital well being startup, has raised $40 million at a $4 billion valuation, a 33% bounce from the $3 billion price ticket it earned only a 12 months in the past. The funding was led by returning investor, Normal Catalyst.

Regardless that 10-year-old Sword Well being is cash-flow constructive, its CEO and founder, Virgílio Bento, advised TechCrunch that he opted to boost further 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-about a near-term IPO. Bento advised TechCrunch final 12 months {that a} 2025 itemizing was a risk.

Regardless of the latest 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 flooring care to quite a few situations, corresponding to cardiovascular care, gastroenterological well being, and speech remedy.

“I wish to IPO when I’ve numerous completely different proof factors at scale in many alternative care verticals — so possibly 2028,” he mentioned.

In latest months, Bento has launched into what he calls an “academic journey” to study managing a public firm, talking with CEOs of varied public firms and bankers.

“On the finish of that training interval, I spotted that should you ask me why we shouldn’t IPO, I can provide you 10 causes. For those who ask me why we must always IPO, I can not discover one motive,” he mentioned.

Bento isn’t satisfied by the everyday causes for an IPO, corresponding to model constructing or capital entry. Pointing to Ikea and Lego as examples of profitable non-public firms, he mentioned sturdy startups can nonetheless safe ample non-public capital, citing Databricks’ huge $10 billion increase.

Liquidity for workers and early shareholders can also be simply attainable for personal firms because of secondary markets, Bento mentioned, including that Sword will seemingly launch a young supply 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’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 mentioned. “I just like the numerical symmetry. I feel it’s enjoyable.”

The newest spherical brings Sword’s whole funding to $380 million. Different members within the new spherical embrace Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Indico Capital and Shilling.