Portugal-based digital health startup Sword Health has raised $40 million in a new funding round led by General Catalyst, bringing its total funding to $380 million.
This latest capital injection values the company at $4 billion, up from $3 billion a year ago.
Though already cash-flow positive, CEO and founder Virgílio Bento said the funds will be used to refresh the company’s valuation and fuel strategic acquisitions.
IPO shelved despite strong revenue
Despite generating $240 million in annual revenue and previously signaling a potential IPO in 2025, Bento now says going public is no longer a near-term goal. “I want to IPO when I have lots of different proof points at scale in many different care verticals — so maybe 2028,” he explained.
After consulting with public company CEOs and financial advisors, Bento concluded that Sword can grow more efficiently as a private company. He cited liquidity via secondary markets and private capital access as sufficient to meet shareholder needs.
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Expanding the AI-powered healthcare platform
Sword Health started as a virtual physical therapy provider and has since branched into pelvic and mental health. Its AI-powered care specialist, Phoenix, is being developed to tackle additional conditions, including cardiovascular, gastrointestinal, and speech therapy services.
Investors and future plans
Alongside General Catalyst, participants in the round include Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Indico Capital, and Shilling. Bento teased a potential $50 million raise at a $5 billion valuation next year, continuing a pattern of sequential growth.
A tender offer to provide liquidity for employees and early investors is also planned for the near future.
