Thatch, an employer-focused health benefits platform, has secured $40 million in a Series B funding round, bringing its total raise to $84.5 million.
Index Ventures led the round, with participation from existing investors Andreessen Horowitz (a16z), PeopleTech Partners, General Catalyst, The General Partnership and SemperVirens, and new investor ADP Ventures.
The company also announced the appointment of Gary Daniels, former CEO of UnitedHealthcare Pacific Northwest, as its new chief growth officer.
WHAT IT DOES
San Francisco-based Thatch provides employers with Individual Coverage Health Reimbursement Arrangement (ICHRA) benefits plans that allow them to set a tax-free monthly allowance for employees to spend on the benefits they choose.
Employees choose the plans available in their area based on their needs, including medical, vision and dental, and employers pay a set dollar amount each month for each employee.
Thatch CEO Chris Ellis said in a LinkedIn post that the company is scaling its offering and expanding its workforce following the raise.
“Health insurance in America wasn’t designed for humans. It was designed for HR departments. That’s why it feels so rigid. So confusing. So broken,” Ellis wrote.
“If insurers sold to individuals, we’d have totally different products, incentives and experiences. Imagine choosing your health plan like you choose your car. Imagine keeping it when you switch jobs. Imagine it feeling … human. That’s the world we’re building at Thatch.”
MARKET SNAPSHOT
Last year, Thatch secured $38 million in a Series A funding round led by General Catalyst and Index Ventures, and in 2023, it raised more than $6 million in funding across a pre-seed and seed round.
Other companies focused on the employer benefits market include digital mental health provider Lyra Health, virtual healthcare and care and benefits navigation company Accolade and Personify Health, which offers health, navigation, benefits and wellbeing experiences as well as data-driven personalization.
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