Portuguese startup Sword Health has announced securing approximately €8.1 million in the second phase of its Series A funding round, which brings the round’s total to around €15.4 million. Khosla Ventures led with participation from Founders Fund, Green Innovations, Lachy Groom, Vesalius Biocapital and Faber Ventures. This news comes roughly a year after the startup announced the first phase of its Series A funding.
Sword Health, founded in 2015, works with insurers, health systems and self-insured employers to provide tech-enabled physical therapy to its members, with a focus on musculoskeletal disorders. Split between a European office in Porto, a US office in NY and a team also in Australia, it has created a wearable with motion-sensing trackers that wirelessly communicates with the digital therapist. The therapist then guides the patient through each therapy session with real-time feedback. This kind of medtech is more in demand than ever, as patients increasingly look to stay in their home for care.
The company plans to put the new funds raised toward distribution, partnerships, sales and marketing.
“At Sword, we’ve taken a disciplined and incremental approach to growth,” Virgilio Bento, founder and CEO, said in a statement. “Given the strong interest from the investment community and the demand we’re seeing in the market, we decided it was the right moment to expand and set SWORD’s digital care programme as the new gold standard of care in the musculoskeletal space.”
“Sword’s digital clinical care model has been shown to significantly improve healthcare outcomes for patients while reducing employer costs, reshaping the future of physical therapy,” Vinod Khosla, founder of Khosla Ventures, said in a statement. “This allows for very exciting options on innovative business models for the company.”