Sword Health Raises $40 Million at a $4 Billion Valuation and Unveils Always-On AI Mental Health Solution to Address the Global Mental Health Crisis

• New funding led by General Catalyst will accelerate the evolution of Sword’s AI Care model, fuel expansion into additional areas of healthcare, and drive ongoing M&A initiatives.
• With the launch of Mind, Sword is turning episodic talk therapy into continuous, data-driven care, both addressing the global shortage of mental health professionals and unlocking scalable access to a global population in crisis.

NEW YORK — June 17, 2025 — Sword Health, the world’s leading AI Care company, today announced a $40 million funding round at a $4 billion valuation, led by General Catalyst. The company also unveiled Mind, a revolutionary mental health solution that combines AI and licensed clinicians to deliver continuous, personalized care, finally transforming mental health from episodic talk therapy to a proactive, always-on support system.

Backed by visionaries in healthcare

This next phase of growth was led by General Catalyst, a long-standing partner of Sword and one of the most influential companies in healthcare innovation. With a proven track record of supporting system-level transformation across Healthcare, General Catalyst brings deep expertise and a shared commitment to building a more accessible, scalable, and AI-powered healthcare system.

“At General Catalyst, we back companies driving meaningful change in healthcare, and we believe Sword Health sits squarely at the forefront of that transformation,” said Chris Bischoff, Managing Director at General Catalyst and Sword board director. “By fusing sophisticated AI with human clinical expertise, Sword is re-imagining the entire care continuum—from physical pain care to today’s launch of Mind for mental health—expanding access, improving outcomes, and lowering costs at a global scale. We’re proud to support Sword as it accelerates the shift toward truly AI-first healthcare.”

The round also included participation from Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Indico Capital, and Shilling. The funds will accelerate Sword’s M&A momentum, support its global expansion, and drive the continued development of foundational AI models across every major area of care.

Mental health care that’s as dynamic as the people it serves

With the launch of Mind, Sword is expanding its AI Care model to tackle one of healthcare’s biggest challenges: access to effective and high-quality mental health care. Today, nearly 1 billion people worldwide live with a mental health condition. Yet care remains fragmented, reactive, and inaccessible. In the U.S. alone, more than 60 million adults experienced mental illness last year, but most never received meaningful care. Despite broad availability of mental health solutions, access remains challenging, utilization remains low, and outcomes aren’t improving.

Traditional therapy, based on episodic 40-minute sessions often weeks apart, can’t keep up with the round-the-clock reality of mental health, and reflects a largely outdated, superficial and one-dimensional view. It captures only fragments of a person’s life, missing the everyday factors that shape mental wellbeing: sleep, stress, relationships, environment.

Mind redefines mental health care delivery with a proactive, 24/7 model that integrates cutting-edge AI with licensed, Ph.D-level mental health specialists. Together, they provide seamless, contextual, and responsive support any time people need it, not just when they have an appointment. The intelligent pairing of AI with clinical expertise is the key to removing access barriers and making high-quality care truly universal.

Three breakthrough innovations power Mind:

• Phoenix: Sword’s AI Therapist
  A highly personalized AI Care agent specifically designed to address mental health conditions in a comprehensive, tailored, and holistic way.
• M-band: Context-aware care
  A proprietary wearable device that captures the patient’s full environmental and physiological context, detecting early indicators of depression and anxiety to enable proactive outreach by Mind clinicians.
• Mind clinicians: Human touch at the center
  Ph.D.-level mental health professionals work in concert with Phoenix to continuously engage with patients daily, ensuring the human touch remains central to care.

Shifting mental health care from reactive to proactive with AI

With AI and mental health clinicians working side by side, Mind shifts care from a reactive model to a proactive one—delivering continuous support, removing barriers to access, and making mental health care truly holistic by combining talk therapy with a biopsychosocial approach that incorporates physiological and contextual factors into ongoing care. And it delivers what matters most: real outcomes. Care adapts in real time to each member’s needs, and organizations only pay when their people improve, setting a new standard the industry has never seen.

“We’ve rebuilt care delivery from the ground up—replacing a century-old, labor-intensive model with AI that removes barriers to world-class care for everyone who needs it,” said Virgilio Bento, Founder & CEO of Sword Health. “Treating more than half a million people and saving clients nearly a billion dollars in unnecessary healthcare costs has proven that Sword’s pioneering AI Care Model is the future of healthcare. This funding is a milestone that allows us to deepen our foundational AI research and to accelerate our expansion into new healthcare verticals like mental health—a field still dominated by unscalable and ineffective models—bringing truly life-changing care to millions who struggle with mental health around the world, the same way we did it for millions with physical pain.”

About Sword Health

Sword Health is shifting healthcare from human-first to AI-first through its AI care platform, making world-class healthcare available anytime, anywhere, while significantly reducing costs for payers, self-insured employers, national health systems, and other healthcare organizations. Sword began by reinventing physical pain care with AI at its core, and has since expanded into pelvic health, movement health, and now mental health. Since 2020, more than 500,000 members across three continents have completed 6.5 million AI sessions, helping Sword’s 1,000+ enterprise clients avoid nearly $1 billion in unnecessary healthcare costs. Backed by 40 clinical studies and over 40 patents, Sword Health has raised more than $300 million from leading investors, including Khosla Ventures, General Catalyst, Transformation Capital and Founders Fund. Learn more at www.swordhealth.com