Gambling Addiction Treatment Provider Birches Health Raises $20 Million in New Funding
Birches Health, a national provider of specialized treatment for gambling and other behavioral addictions, has closed a combined $20 million in Series A and Seed funding. The new capital will be used to accelerate the company’s expansion as it works to meet the growing demand for accessible, insurance-covered clinical treatment in a rapidly evolving market. The Series A round was led by AlleyCorp, and the Seed round was led by General Catalyst, with continued participation from a roster of other prominent venture capital firms.
Building a National Network for a “Public Health Crisis”
The funding comes as the United States is facing what many experts are calling a “looming gambling addiction crisis.” The rapid expansion of legal sports betting and online gaming has created a new landscape, and with it, a new set of public health challenges.
“Gambling addiction is a public health crisis unraveling before our eyes,” said Youssef Kalad, a Principal at the lead investor, AlleyCorp. “Between the constant flood of ads in sports media and the rise of new financial speculation products, gambling’s impact on American families is reaching a tipping point.”
Birches Health was founded to address this crisis directly. The company has built the largest national network of specialized clinicians focused on treating gambling addiction, as well as other behavioral addictions related to video gaming, sex, pornography, and the internet.
A Focus on Accessibility and Insurance Coverage
A key part of Birches Health’s model is its focus on breaking down the traditional barriers to care. Historically, individuals struggling with behavioral addictions have faced fragmented access to treatment, a problem compounded by geographical and financial obstacles.
Birches Health is tackling this challenge by:
- Operating a nationwide telehealth platform, which provides convenient and effective online care from the comfort of a patient’s home.
- Partnering with hundreds of insurance plans, including major national carriers like United Healthcare, Cigna, and Aetna, to make specialized care more affordable and accessible.
“By integrating with leading insurance companies and state Departments of Health, we are proving that access to specialized care…should be available to all,” said Elliott Rapaport, founder and CEO of Birches Health.
An Evidence-Based Clinical Model
The company’s clinical program is built on an evidence-based model that is tailored to the unique needs of each individual. The virtual care offerings include individual, family, and group therapy, all supported by a digital engagement platform that features resilience and recovery programming from individuals with lived experience.
“Gambling addiction is so often seen as a personal failing or a financial issue rather than the behavioral addiction that it is,” said Dr. Martin Rosenzweig, a Birches Health board member and the former Chief Medical Officer for Behavioral at Optum. “Birches has developed a much needed evidence-based clinical solution with a unique program acuity matched to the needs of the individual…offering a viable path to recovery.”
The new funding will allow Birches Health to continue to invest in its clinical model, expand its provider network, and forge new partnerships with state Departments of Health. As the public health consequences of the gambling expansion become more apparent, the company is positioning itself as a key part of the solution, providing a scalable and accessible pathway to treatment for a growing and often underserved population.
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