Thatch reaches US$1 billion valuation with US$108 million funding round
The healthcare benefits platform has raised fresh capital from existing investors as employers seek alternatives to traditional health plans.
Healthcare benefits platform Thatch has raised US$108 million at a reported US$1 billion valuation, according to TechCrunch, marking a sharp increase from its previous funding round.
The financing came from existing investors The General Partnership, Index Ventures, General Catalyst and Andreessen Horowitz. It follows a US$40 million Series B completed 17 months earlier at a reported US$410 million valuation.
Thatch was founded in 2021 by co-founder and chief executive Chris Ellis and former Stripe engineering executive Adam Stevenson. Ellis told TechCrunch that the company’s annual recurring revenue grew roughly sevenfold, without disclosing underlying figures or the measurement period.
The platform helps employers provide individual health, dental and vision plans through Individual Coverage Health Reimbursement Arrangements, or ICHRAs, recently rebranded as CHOICE. The model allows employers to set a fixed health budget for workers, who can then select individual insurance rather than joining a single company-wide plan.
Thatch uses artificial intelligence to recommend plans and provides a debit card for eligible health expenses. The company’s growth comes as employer healthcare costs rise and workers show greater interest in treatments including GLP-1 medicines, according to the source report.
The startup competes with Take Command, Remodel Health and Zorro in offering alternatives to traditional employer-sponsored healthcare arrangements.
