SWORD Health, a NYC-based startup that specializes in virtual musculoskeletal (MSK) care, just announced it raised $85 million in fresh funding. The Series C was led by General Catalyst, with participation from other familiar faces like Khosla Ventures, Founders Fund and BOND, bringing the company’s total funding raised to $135 million.
“SWORD has been the foremost pioneer in the virtual MSK care space,” CEO and founder Virgilio Bento said in a statement, claiming the company was the first to introduce sensor-based tech to the space, and the first to successfully treat patients across three continents. “Now it’s time to pioneer this space again by developing the leading results-oriented, value-based virtual musculoskeletal care provider model in the world and decrease the cost of high-quality MSK treatment for all.”
MSK conditions, which can range from a sprained ankle to tendinitis, are among the leading causes of chronic pain and disabilities, affecting more than 2 billion people worldwide, according to SWORD Health. As an alternative to expensive surgeries and potentially addictive painkillers, the company’s platform pairs patients with a licensed physical therapist and its “digital therapist” — an FDA-listed device kitted out with a tablet and motion sensors that deliver personalized treatments virtually. As patients do their physical therapy at home, the digital therapist offers feedback and pointers.
SWORD Health says its platform is the most “comprehensive” on the market, covering acute chronic and preventive care for everything from the back and shoulders to ankles and wrists. The company sells its solution to insurers, health systems and employers in the United States, Europe and Australia.
“Treatment of musculoskeletal disorders costs the U.S. health system alone in excess of $300B per year,” Chris Bischoff, a managing director at General Catalyst, said in a statement. “SWORD Health has set the new standard of therapy in MSK by combining novel hardware, software and physician-directed care.”
Bischoff describes MSK as “one of the most important and urgent problems in healthcare.” Its pervasive nature has led to a surge in popularity of MSK-focused digital health startups. Hinge Health, another startup that treats MSK conditions digitally, reportedly hit a $3 billion valuation earlier this year; and Kaia Health raised $75 million in April, claiming that demand for its digital musculoskeletal treatment alone grew the business by 600 percent last year.
Although its platform has only been on the market for about 18 months, SWORD Health says it is the “fastest growing virtual musculoskeletal care provider” right now. This latest round plus the $25 million Series B the company announced in January brings its total funding raised in just six months to $110 million. Plus, the company says it has increased its number of treated patients 1,000 percent year over year, leading to a 600 percent year-over-year growth in revenue.
To keep up the momentum, the fresh capital will be used to further build its platform. The company is also hiring, with more than 50 open tech positions available at its offices around the world.
