Thatch, a platform for employer-provided healthcare benefits, has secured $108 million in a new funding round. This investment brings the company's valuation to $1 billion. The round was supported by existing investors, including The General Partnership, Index Ventures, General Catalyst, and Andreessen Horowitz.
The company previously raised $40 million in a Series B round 17 months ago, which valued the startup at $410 million. According to CEO Chris Ellis, Thatch has achieved a sevenfold increase in its annual recurring revenue since its founding in 2021.
Thatch operates by facilitating Individual Coverage Health Reimbursement Arrangements, recently rebranded as CHOICE. This model allows employers to provide fixed health budgets instead of traditional group plans. Employees use these funds to select individual insurance options on the Thatch marketplace.
The platform utilizes AI to suggest health plans tailored to individual needs. Employees can use remaining funds for other health-related expenses, such as GLP-1 medications, via a company-issued debit card. This approach aims to provide flexibility while managing rising healthcare costs.
