Sword Health will value $40 million with a $400,000 valuation and push its IPO plan to at least 2028

Sword Health, an AI-powered digital health startup, has raised $40 million at a $4 billion valuation. 3 billion dollar price tag I made money exactly a year ago. This funding was led by a general catalyst, a return investor.

Though the 10-year-old sword health is cash flow positive, CEO and founder Virgílio Bento told Tech Crunch that he chose to raise additional capital for two important reasons.

Sword Health, which began as a virtual physiotherapist and later expanded to providing pelvic health and mental health services, previously considered a short-term IPO. Bento told TechCrunch last year that the 2025 listing is possible.

Despite the recent successful IPO of counterparts Hinge Health and I have it, Also, Bento, which is the sword’s $240 million annual revenue travel fee, is reconsidering its IPO plan.

“It’s going to be much slower than everyone would expect,” he said.

Bento’s goal is for Phoenix, an AI care specialist at Sword, to extend telehealth beyond musculoskeletal pain and pelvic bed care to many conditions including cardiovascular care, gastrointestinal health, and speech therapy.

“It’s probably 2028 because I want to IPO when there are a lot of vertically different points of different care,” he said.

Over the past few months, Bent has embarked on what he calls an “educational journey” to learn about managing public companies talking to various public companies and banker CEOs.

“At the end of that education period, when I ask me why we shouldn’t do an IPO, I realized that I can give you 10 reasons. If I ask why we should do an IPO, I can’t find one reason,” he said.

Bento is not convinced of typical reasons for IPOs, such as brand building and capital access. He pointed to IKEA and LEGO as examples of successful private companies, saying strong startups can still have enough private capital. Databricks’ massive $10 billion promotion.

Liquidity for employees and early shareholders is easy to achieve for private companies thanks to the secondary market, Bent said, adding that Sword is likely to begin a tender offer next month.

Sword hopes to raise more capital next year, Bent said. He predicts the size Evaluation of the company’s next funding round.

“Last year we raised $30 million at a $3 billion valuation. This year we made $40 million at $4 billion. I think you can imagine the type of salary increases next year. “I like numerical symmetry. I think it’s fun.”

In the latest round, Sword’s total funding is $380 million. Other participants in the new round include Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Armilar, Inco Capital and Shilling.