Modern health benefits platform Thatch banked $108 million in series C funding, boosting its valuation to $1 billion.
Investors in this funding round included the General Partnership, Index Ventures, Scale Venture Partners, General Catalyst, Andreessen Horowitz, Avid Ventures, Quiet Capital, SemperVirens and QuantumLight. Executives note new strategic investors include Eli Lilly and Company, ADP Ventures and Paychex.
“Healthcare is nearly a fifth of the American economy, operating for decades without its most important participant at the table,” said Chris Ellis, Thatch CEO and co-founder, in the announcement. “We're putting the consumer back at the center, one employer at a time.”
Thatch Co-Founder and President Adam Stevenson told Fierce Healthcare in September 2024 that the startup moves away from the traditional one-size-fits-all approach most employer-sponsored health benefits plans take.
"Thatch is a self-serve product,” Stevenson said. “So, for an employer, let's say you've got a coffee shop, you've got 10 employees, you want to give them health benefits. You come into Thatch, you sign up self-serve, you connect your bank account, you authenticate into your payroll system, and then we've got some cool tools that make it easy for you to budget.”
Through the platform, employees can choose plans based on needs. The platform enables simplified budget setting, personalized plan selection tools and tax incentives and credits integration. For employees spending less than budgeted amounts, Thatch provides a Thatch Visa debit card that can be used for costs.
The company announced a $40 million series B funding round in April 2025 and $38 million in series A funding in September 2024.
Since its series B funding announcement, executives say the startup’s annual recurring revenue has “surged almost 7x over the last twelve months,” as the company powers benefits for more than 5,000 employers.
Moreover, the startup secured a series of new partnerships and launched Thatch Marketplace last spring, which is a network of health and wellness services for employees.
Thatch plans to use the fresh capital to improve health navigation tools for members, build out more carrier partnerships and payroll integrations and invest in improving the customer experience, executives said.