Why We Invested in Sober Sidekick
We are excited to announce our latest investment in Sober Sidekick, led by Founder and CEO Chris Thompson. Sober Sidekick is a Health Tech company with a pioneering health engagement platform dedicated to empowering individuals. We are proud to be investment partners in the company’s $2.5M seed round, investing alongside HealthX Ventures, Nina Capital, 46 VC, American Heart Association, and former regional Humana CEO Michael Brouthers, among others.
Sober Sidekick is an emerging leader within the $43B US addiction recovery market. Sober Sidekick’s platform leverages a mobile-first AI-driven approach, utilizing gamified peer-to-peer support to enhance addiction recovery outcomes. The company’s "Empathy Algorithm" ensures that each member receives immediate peer support, boasting an industry-leading response rate. This personalized support system has fostered a thriving community of over 500,000 members and growing. Their growth is a testament to the platform’s effectiveness and the team’s strategic insight.
What excites us most about Chris is his profound understanding of the challenges faced by individuals in recovery, stemming from his own personal journey with addiction. Chris's dedication to creating a supportive and effective platform is reflected in his leadership and the company’s innovative approach to addiction recovery. The company operates under a revenue model that aligns its success with the recovery success of its users, embodying its commitment to positive outcomes. This model not only supports users in their recovery journey but also provides a scalable and data-driven approach that appeals to healthcare providers and payers by reducing overall treatment costs and improving care outcomes. This revenue model was chronicled in an insightful Harvard Business School Case Study on Sober Sidekick. So far, Sober Sidekick has a contract with one health plan, AmeriHealth Caritas. Contracts with three more national health plans and state Medicaid plans are being finalized.
The importance of Sober Sidekick’s mission in the broader healthcare ecosystem cannot be overstated. Substance abuse impacts 40M Americans, while only 1 in 7 seek care annually, and cost over $46B to the healthcare system. The way substance abuse has been addressed has a 95% one-year failure rate leading those seeking care with 7 care cycles on average. By providing continuous engagement and predictive analytics to prevent relapses, Sober Sidekick offers a transformative approach to a persistent challenge, marking a significant advance towards value-based care in healthcare.
With strategic plans to expand its reach through partnerships with healthcare payers and providers, Sober Sidekick is poised to scale its impact. The platform’s ability to predict relapse with high accuracy introduces a proactive component to addiction care, representing a paradigm shift towards preventive healthcare models. Sober Sidekick has developed strong partnerships and pipelines with healthcare providers and payers positioning itself to redefine addiction recovery through a value-based care model. This approach prioritizes long-term patient outcomes and scalability across diverse healthcare environments. The company’s innovative solutions have already demonstrated significant impact, with a 68% relapse reduction rate.
We look forward to working closely with Chris and his team, providing portfolio support to accelerate Sober Sidekick’s growth and impact. The company exemplifies how technology can be leveraged to not only improve health outcomes but also to forge pathways for meaningful, long-term recovery. Sober Sidekick is a sustainable and effective solution to one of the most pressing public health crises of our time. We eagerly anticipate the positive changes Sober Sidekick will continue to make in the lives of their users and across the healthcare landscape.
