Halcyon Health, a once-promising virtual addiction treatment startup based in New York, has announced it is shutting down operations. The news came in a heartfelt LinkedIn post by co-founder, president, and COO Andrew Bryk, who said the company would no longer continue after years of building a model to transform substance use disorder care.
“After several years of hard work, we have decided to halt operations at Halcyon Health,” Bryk wrote. “We took risks trying to push the envelope in mobile-first care for substance use disorder by merging evidence-based treatment with engaging content, async data collection, and certified peer recovery coaching.”
The announcement also included a plea for support for former team members, many of whom are now seeking new positions in digital health, mental health, and addiction recovery spaces.
A Vision to Revolutionize Substance Use Disorder Care
Founded in 2019 by Andrew Bryk and CEO Josh Nussbaum, Halcyon Health was part of a new wave of digital health ventures aiming to close the treatment gap for people with substance use disorders. The virtual addiction treatment startup was built on a forward-thinking model that combined several essential components of modern behavioral health care:
- Telehealth-based consultations
- Virtual medication-assisted treatment (MAT)
- Certified peer recovery coaching
- Care coordination using mobile technology
- Asynchronous data collection to personalize care
This approach reflected an ambitious effort to deliver evidence-based care to people struggling with addiction in a convenient and stigma-reducing format. The virtual addiction treatment startup sought to increase engagement by making recovery services more accessible via smartphones, and by including content that educated, motivated, and empowered users on their journey.
Operating in a Growing Yet Challenging Space
Halcyon Health operated in a space that has seen significant growth in recent years. Several virtual addiction treatment startup models have entered the behavioral health market with the promise of improving access, especially for people in underserved or rural areas. Some of the most recognized names in this category include PursueCare, Ophelia Health, and Bicycle Health. Additionally, Cerebral Inc.—initially a mental health platform—launched its own MAT program as part of an expansion into addiction treatment.
Despite being well-funded, Halcyon faced the same difficult path as many in the digital health arena. The virtual addiction treatment startup raised approximately $2.5 million from a group of early-stage investors, including Notation Capital, Version One Ventures, Cold Start Capital, and Compound, according to Crunchbase.
However, funding alone doesn’t guarantee long-term viability. Startups in this space must navigate a complex and fragmented reimbursement landscape, regulatory scrutiny, patient engagement challenges, and a rapidly evolving digital care ecosystem. In this environment, building a sustainable business—while also staying clinically rigorous—can be an uphill battle.
A Setback, But Not a Stop Sign
The closure of Halcyon Health represents a setback not only for the team behind the company, but also for the broader effort to digitize and scale addiction treatment. That said, this is far from a death knell for the virtual addiction treatment startup space. On the contrary, it serves as an important case study and learning opportunity.
The reality is that more people than ever need access to effective, compassionate, and flexible addiction treatment. The virtual model holds tremendous potential, particularly in increasing access to MAT and ongoing recovery support. The tools Halcyon pioneered—such as mobile-first content delivery, asynchronous monitoring, and peer coaching—remain vital innovations. The challenge now is learning how to implement them at scale with sustainable operations.
Lessons for Future Startups in Behavioral Health
Future founders and investors in the virtual addiction treatment startup category can take away several lessons from Halcyon Health’s journey:
- Sustainable reimbursement is critical
- Clinical outcomes matter
- Patient engagement is the hardest nut to crack
- Partnerships can power sustainability
Startups must design care models that are not only clinically effective but also operationally sound and financially viable. Navigating insurance reimbursement, maintaining compliance, and demonstrating results are essential for long-term success.
A Workforce With Unique Experience
One of the silver linings of this moment is that Halcyon Health’s team—composed of professionals with experience in virtual care, behavioral health, and digital innovation—is now available to contribute to other organizations. Any digital health company or treatment provider looking to grow its impact would benefit from hiring individuals who helped operate a mission-driven virtual addiction treatment startup.
These professionals understand not only the clinical side of addiction care, but also the technical, operational, and human factors that go into building and scaling care delivery systems. Their experience is especially valuable at a time when demand for telehealth, MAT, and peer support continues to grow.
Looking Forward: A Resilient Future for Virtual Addiction Care
Halcyon Health’s shutdown is not the end of the story for digital innovation in addiction treatment. The need for flexible, patient-centered solutions continues to grow, and every virtual addiction treatment startup that enters the market adds a new piece to the puzzle.
With lessons learned, the next wave of startups may be more prepared to tackle the realities of healthcare delivery. Meanwhile, investors and policy makers should recognize the importance of creating environments where these companies can succeed—not just with capital, but with supportive infrastructure and thoughtful regulation.
The core idea behind Halcyon Health—that technology can make recovery more accessible, more personal, and more supportive—still holds true. As more virtual addiction treatment startup ventures move forward, they will do so on the foundation laid by Halcyon and others who dared to reimagine what addiction care could look like.
Final Thoughts
The closure of Halcyon Health offers a valuable opportunity to reflect on the state of the virtual addiction treatment startup ecosystem. While the challenges are real, the need for innovation remains critical. Organizations looking to continue the mission Halcyon began have a chance to recruit experienced professionals, build on lessons learned, and deliver care in new and effective ways.
Now is the time to recommit to the vision: accessible, evidence-based, technology-enabled addiction treatment that meets people where they are—and helps them get where they need to go.
