Announcing Defy.vc’s Investment in Birches Health: Leading the Fight Against Gambling Addiction
We are thrilled to announce our investment in Birches Health as they come out of stealth with $20 million in seed and Series A funding. Birches is the leading national provider of specialized treatment for gambling addiction and other behavioral disorders. We’re thrilled to support Birches Health’s mission to transform access to care for millions struggling with behavioral addictions alongside Alleycorp, General Catalyst, Will Ventures, Haystack, and Operator Partners. More below on why we invested, why we’re so inspired by the founder, the immense market opportunity, and how Birches is poised to make a lasting impact on the world.
Why We Invested in Birches Health
America is facing a growing public health crisis, with 28% of adults engaging in daily online gambling, according to a recent American Psychiatric Association poll. Fueled by pervasive sports betting ads and new financial speculation products, gambling addiction is a behavioral health challenge that demands accessible, evidence-based solutions. Birches Health is meeting this need with a comprehensive, insurance-covered virtual care platform that addresses gambling, gaming, sex, pornography, and internet addictions.
Birches has built the largest network of specialized clinicians in the U.S. and partnered with major insurers like United Healthcare, Cigna, Aetna, and Blue Cross Blue Shield. Their virtual model delivers tailored treatment from the comfort of home, eliminating geographical and financial barriers. With 96% of patients reporting improved quality of life and 94% rating Birches five stars, it is clear that the company is delivering impactful, much needed patient-centered care. We’re proud to invest in a platform that’s delivering results and scaling to address this critical need.
Importantly, behind every generational company is a generational founder. This is the case for Birches. Elliott Rapaport saw gambling becoming an increasingly pervasive habit among his peers and started Birches to provide the behavioral addiction support he found to be lacking in the industry. His commitment to integrating with state Departments of Health and major insurers ensures that cost doesn’t stand in the way of care. Elliott’s blend of empathy, focus on clinical excellence and operational strategy has positioned Birches Health as a leader in behavioral addiction treatment, and we’re excited to back a founder who is driving meaningful change with such clarity and passion.
The Market Opportunity
The market for behavioral addiction treatment is vast and underserved. Gambling addiction alone affects millions of Americans, with ripple effects on families and communities. The rise of online gambling, coupled with pervasive advertising in sports media, has accelerated the need for specialized care. Beyond gambling, Birches Health addresses other behavioral addictions—such as gaming, sex, and pornography—that are increasingly prevalent in the digital age. By offering a scalable, virtual platform that integrates with insurance and state funding, Birches Health is well-positioned to capture a significant share of this growing market.
This funding will accelerate Birches’ expansion of its clinician network, clinical programs, and digital infrastructure to meet rising demand. With a clear path to growth, we’re excited to support Birches as they lead the charge in addressing behavioral addictions nationwide. This is a rare opportunity to invest in a company that combines a massive market opportunity with a clear path to impact.
Driving Positive Impact
At defy.vc, we invest in companies that tackle big problems and create lasting impact. Birches Health does just that by addressing a large and growing public health crisis too often overlooked. Their confidential, evidence-based care—offering individual, family, and group therapy, supported by resilience and recovery programming—empowers individuals to reclaim their lives. By reducing stigma and ensuring accessibility, Birches strengthens communities and supports families nationwide.Having already helped thousands of patients on their recovery journeys, Birches is setting a new standard for equitable behavioral health care.
Looking Ahead
This investment will fuel Birches Health’s efforts to innovate on clinical excellence, expand its provider network, and scale its technology to meet growing demand. We’re confident that Birches will continue to lead the way in addressing gambling addiction and other behavioral disorders.
We’re proud to partner with Elliott and the Birches Health team as they build a future where everyone has access to transformative care. To learn more about their impactful work, visit bircheshealth.com. To founders tackling bold challenges, let’s connect at defy.vc—we’re eager to hear your vision.
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