As more digital physical therapy startups raise funding, competition is rising to win over coverage from more health plans. One of them, Sword Health, recently raised $85 million to grow its business through partnerships with insurers and employers.
General Catalyst led the series C funding round, bringing Sword’s total funding to date to $135 million. The New York-based startup offers digital programs that involve meeting with a physical therapist, and using strap-based sensors to guide people through exercises. It claims its services can address both acute and chronic pain, as well as preventive care.
In the last year, Sword saw its revenue increase by 600% year-over-year. The company touts high retention rates, and it only charges for members that are engaged in the program.
Some of its users include analytics company Health Catalyst, Foot Locker and Concordia Plans. One of them, Danaher, said it saw a 80% decrease in surgery intent and a 49% pain reduction after 12 weeks.
Of course, Sword has plenty of competition as other digital health companies strike partnerships and raise cash. One of them, Kaia Health, is working on building out a referral network and expanding its cell phone-based solution in the U.S. Another competitor, Hinge Health, was recently valued at $3 billion.
Other companies might see these startups as an acquisition target, as they look to bundle together more services. Omada Health did just that when it acquired virtual physical therapy startup Physera.