SWORD Health secures $85 million in Series C funding to further boost its digital MSK offering

Earlier this month, digital musculoskeletal care startup SWORD Health announced $85 million in Series C funding that will go toward continued growth of its digital solution. The announcement comes about six months after the company closed its $25 million Series B funding round.

Led by General Catalyst with participation from BOND, Highmark Ventures, BPEA, Khosla Ventures, Founders Fund, Transformative Capital and Green Innovations, this latest round brings the company’s total funding to $135 million.

Based in New York, SWORD Health has developed a remote physical therapy platform for people with musculoskeletal pain. Working directly with employers, payers and providers in the U.S., Europe and Australia, the company provides patients with access to virtual physical therapy for back, shoulder, neck, knee, elbow, hip, ankle and wrist issues.

How does it work?

The platform provides each patient with a tablet and motion sensors that allow the physical therapist to direct the patient via traditional telemedicine. The therapist has access to more than 5,000 automated messages corresponding to various movements and can monitor and evaluate the patient’s progress. The platform also allows for adjustments to be made based on progress.

With 1.7 billion people affected by musculoskeletal conditions worldwide, according to the WHO, SWORD health plans to continue to expand its offering to reach even more people in need of an optimised solution to their pain.

The company currently reports a 1,000% increase in the number of patients treated year over year and a 600% increase in overall revenue year over year.

Chris Bischoff, CEO of General Catalyst, explained in a statement that the treatment of musculoskeletal disorders currently costs the U.S. healthcare system alone more than $300 billion annually. This challenge, along with improving accessibility, is at the heart of what SWORD Health seeks to solve by combining innovative hardware and software with physician-directed care. The health technology solution enables high-quality treatment directly from the patient’s home, while simultaneously providing a more personalised, engaging and efficient experience, Bischoff continued. General Catalyst is thrilled to partner with Virgilio and the rest of the team to further develop a solution that improves patient outcomes while reducing unnecessary costs in the area of musculoskeletal disease for payers, employers and providers, he concluded.

Currently, SWORD Health’s main competitor is Hinge Health, another musculoskeletal disease company, which recently secured $300 million in Series D funding for its musculoskeletal health program. It is followed by Kaia Health, which recently completed a $75 million Series C funding round to expand its physical therapy services in the United States and Europe.

Across the pond, U.K.-based Physitrack went public earlier this month on the Nasdaq First North Premier Growth Market with an initial offering of SEK 40 ($4.69) per share.

The market holds promise for one of the most common and pressing issues in healthcare, as more general care healthcare technology companies look to integrate the space. Last year, chronic care management company Omada Health announced the acquisition of musculoskeletal care company Physera.