Sword Health, a digital healthcare startup specializing in AI-powered virtual physical therapy, has raised $40 million in a funding round led by venture capital firm General Catalyst, securing a valuation of $4 billion. This marks an increase from its $3 billion valuation in June 2024. The company is expanding its platform beyond physical therapy to include pelvic and mental health services. The funding round also included participation from investors such as Khosla Ventures, Comcast Ventures, Lince Capital, Oxy Capital, Indico Capital, and Shilling Capital. General Catalyst emphasized its commitment to delivering proactive, affordable, and accessible care through applied AI, citing Sword Health as an exemplar of this vision. The company has postponed its initial public offering plans to at least 2028.