12.22.25

Why We Invested in Kadia Health

What Does Kadia Health Offer

Kadia Health is a digital health company that provides virtual coaching and support programs for families of individuals struggling with substance use disorders, using evidence-based methods like CRAFT.

The Current State of Substance Use Disorder Care

Substance use disorder is one of the largest unmet needs in the United States, with 48 million Americans affected and only 12% receiving treatment each year. The overwhelming majority avoid care because they do not believe they need help, creating a large population of treatment-resistant individuals with no structured path into treatment. Families feel this gap immediately and are actively searching for real guidance, creating a natural pull for a solution built specifically for them.

Policy and clinical momentum are increasingly aligned with this need. Agencies such as the Substance Abuse and Mental Health Services Administration and the National Institutes of Health are encouraging deeper family involvement in addiction care and have emphasized the lack of scalable interventions capable of moving resistant individuals toward treatment. The Peterson Health Technology Institute has similarly found that while virtual addiction programs improve outcomes, they do not meaningfully expand access, highlighting the need for tools that actively engage individuals into care. Kadia sits directly within this missing layer.

The broader SUD market is supported by strong tailwinds. Substance use remains a top public health issue, costing the U.S. healthcare system more than $800 billion annually. At the same time, there is a growing shift toward openness, funding, and systemic change. Agencies like SAMHSA and NIH are increasingly advocating for family-based intervention models, reinforcing the importance of treating addiction as a system-wide issue rather than an individual one.

Why Now

Kadia is emerging at a moment defined by a convergence of structural, clinical, and cultural shifts. Treatment centers are already operating at or above capacity and are structurally designed to treat the individual once they enter care, but not to engage or convert treatment-resistant patients. This creates a persistent upstream bottleneck where families are actively seeking solutions but have no standardized pathway to move a loved one into treatment. The result is a large, high-intent population that the existing system does not capture.

At the same time, virtual care has moved from a necessity during COVID to a normalized modality across behavioral health. Payers, providers, and patients are now comfortable with remote, longitudinal engagement models, particularly for conditions that require ongoing behavioral reinforcement. This shift enables Kadia to deliver structured, clinician-led interventions with significantly greater accessibility, lower cost, and higher consistency than in-person alternatives.

In parallel, there is increasing clinical and policy recognition that substance use disorder is not solely an individual condition, but a family system problem. Frameworks like CRAFT have demonstrated that trained family members can materially influence treatment entry and outcomes. Historically, SAMHSA funding streams and program guidance were largely oriented around patient-presenting care (e.g., block grants and treatment capacity), with minimal formal infrastructure for engaging families as active participants in driving treatment entry. Similarly, the NIH focused primarily on individual-level interventions and clinical outcomes.

Over the past few years, both SAMHSA and NIH have explicitly expanded priorities to include family-based interventions, early engagement models, and behavioral pathways that move individuals into care, recognizing that improving outcomes requires influencing patients before they opt into treatment. However, despite this alignment, there is still no scaled infrastructure that operationalizes family-driven care in a consistent, reimbursable way.

Kadia sits directly at the intersection of these trends. It transforms an unstructured, emotionally charged family crisis into a standardized, protocol-driven intervention layer that fits cleanly into existing care pathways. By doing so, it not only improves the likelihood of treatment entry but also aligns with payer incentives around outcomes, engagement, and downstream utilization.

Kadia Health’s Solution

Kadia delivers a structured 12-week, CRAFT-based program combining live clinician sessions, coaching, and continuous support for families navigating a treatment-resistant loved one. On the surface, this is a high-quality virtual care product, providing weekly sessions paired with asynchronous messaging, exercises, and content that drive sustained engagement and behavioral change.

That framing undersells what’s actually being built. Kadia is capturing and structuring one of the most valuable, but systematically lost, entry points in behavioral health: the family. Today, families are often the first to recognize the need for treatment, but they sit entirely outside the formal care funnel. Providers only engage once a patient opts in, leaving a massive, high-intent population unmonetized and unserved.

Kadia turns that gap into infrastructure. Through its white-labeled intake and referral workflows, Kadia operates as Admissions-as-a-Service for treatment centers. Instead of fragmented inbound calls with low conversion, centers receive families who have been educated, coached, and behaviorally guided over time.

This is not a lightweight referral layer. Kadia acts as a system of engagement and triages upstream of care. It captures demand early, nurtures it longitudinally, and coordinates handoffs at the point of readiness. The result is a higher-quality pipeline, improved conversion, and tighter alignment with how providers actually generate revenue.

Critically, this creates a compounding data advantage. Kadia sits across thousands of family journeys, tracking engagement, readiness signals, and conversion outcomes. That data feeds back into both the product (improving coaching efficacy) and the platform (improving admissions efficiency), strengthening its position as a core layer in the ecosystem. The clinician network and CRAFT protocol are the wedge, while the defensibility is in the workflow, the data, and the integration into provider economics.

Business Model and Go-To-Market

Kadia’s initial wedge is through treatment center partnerships. Centers receive a high volume of inbound family inquiries that they are not equipped to handle, particularly when the individual is not yet ready for treatment. Kadia becomes the white-labeled partner that supports these families, effectively converting lost demand into a structured intake funnel.

This model aligns incentives across stakeholders. Treatment centers benefit from increased admissions and improved conversion rates, while families receive immediate and actionable support rather than being turned away. Kadia integrates directly into existing workflows with minimal operational lift, lowering friction and accelerating adoption. This partnership-driven strategy is what enables Kadia to build a scalable referral network. As more centers adopt the platform, the company benefits from a compounding pipeline of families entering its programs, strengthening both distribution and trust.

Importantly, the long-term opportunity extends far beyond this initial wedge. There are over 15,000 treatment centers in the U.S. and an estimated 2.5 million caregivers actively navigating addiction each year. Beyond this, tens of millions of families fall into treatment-resistant scenarios and are already spending on therapy, coaching, and crisis resources. Kadia’s foothold within treatment centers provides a defensible entry point, with a credible path to expand into payers, employers, and broader family mental health spend over time.

Traction and Early Validation

Kadia has secured exclusive contracts with multi-location treatment centers in some of the most competitive US markets, demonstrating early enterprise-level validation. The company is also in active discussions with multi-state operators that could generate thousands of referrals annually. In addition to commercial momentum, Kadia’s approach is grounded in strong clinical validation. CRAFT has been studied across more than 25 trials and has consistently demonstrated effectiveness in engaging treatment-resistant individuals. This combination of validated methodology and early distribution partnerships provides a strong foundation for continued growth.

Why They Win

Kadia is uniquely positioned within the care journey. Rather than competing with treatment centers, it enhances their operations by addressing a critical gap before formal treatment begins. As Kadia becomes embedded within admissions workflows, it has the potential to become the default pathway for families seeking help. This creates defensibility through distribution, trust, and integration. Over time, the accumulation of referral partnerships and family relationships builds a network that becomes increasingly difficult to replicate.

Additionally, Kadia’s focus on families targets a segment of the market that is both highly motivated and historically underserved. By engaging families earlier in the process, the company is able to influence outcomes upstream, where intervention has the greatest impact.

Experienced Team

Kadia’s team combines strong product leadership with deep clinical expertise and operational insight.

CEO Charlotte brings a product and analytics background shaped by roles at Google, American Express, and IBM, along with training at the University of Chicago Booth School of Business as a Polsky Fellow. Her experience building data-driven systems is reflected in Kadia’s structured, outcomes-focused approach to care delivery.

The Clinical Lead, Heidi, brings over 13 years of experience working directly with families affected by substance use disorder. Her expertise ensures that Kadia’s programs are both scalable and grounded in real-world clinical practice.

Another key member is Mary, who brings a wealth of experience in high-growth operations and investor relations, having scaled complex professional networks and streamlined organizational workflows. Her background in managing institutional relationships and operational strategy ensures that Kadia’s go-to-market and partnership efforts are executed with the precision required to navigate the institutional healthcare landscape.

Together, the team demonstrates strong founder-market fit, pairing a clear understanding of the problem with the ability to build a scalable and impactful solution.

The Future of Family-Driven Care

We believe Kadia has the potential to become the default entry point into addiction care. By equipping families with structured tools and ongoing support, the company is building infrastructure for a more proactive and coordinated care model.

Over time, this approach can extend beyond substance use disorder into broader areas of behavioral health and chronic care, where family involvement plays a critical role. Kadia’s platform has the potential to evolve into a comprehensive system for guiding individuals into care, improving access, and driving better outcomes across multiple conditions.

Our Ties to Behavioral Health and Addiction Care

At Stone Mountain Ventures, we have long believed in the need for innovation within behavioral health and substance use disorder care. We have made multiple investments across the space and consistently focus on solutions that deliver both meaningful outcomes and sustainable value.

This is a deeply personal category. Families navigating addiction often lack clear guidance, and existing systems are not designed to support them effectively. Kadia represents a meaningful step toward addressing this gap at scale.

Further Reading and Market Context

1. The Evidence Base for CRAFT

2. Federal Policy & Funding Shifts

3. Market Economics & Healthcare Spend

4. Clinical Integration & Patient Engagement