We founded Thatch on a radically simple premise: if we reorient our healthcare system around the consumer, we can build a healthcare system people love. Today, we're excited to announce a significant milestone in our journey. We’ve raised a $108 million Series C funding round, bringing Thatch's valuation to $1 billion.
The Series C is a major vote of confidence from both existing and new investors, including The General Partnership, Index Ventures, Scale Venture Partners, General Catalyst, Andreessen Horowitz, Avid Ventures, Quiet Capital, SemperVirens, and QuantumLight. But the participation of strategic heavyweights like Eli Lilly and Company, ADP Ventures, and Paychex in this round also signals something bigger: established leaders across the healthcare industry recognize the shift toward more personal, flexible health benefits — and they're investing in it.
Putting the consumer in control
Our vision is a world where healthcare is personal, and people can buy better health.
Thatch exists to put the $6 trillion in annual healthcare spend in the control of consumers, where it belongs. We help companies shift from traditional health benefits to health budgets. Rather than companies choosing specific insurance plans for their teams, they instead give employees money they can use to buy the plan that actually fits their life. Employees can then spend whatever's left over on the things that make healthcare personal — therapy, cash-pay GLP-1s, preventative diagnostics and much more.
Shifting the country to health budgets sets off a magical chain reaction. When you give people purchasing power in healthcare, it creates a market. That, in turn, produces competition, which is great for consumers. It forces insurance companies and healthcare providers to compete for their dollars. Consumers decide which services they like best, and those rise to the top.
A lot’s happened since our Series B
We’ve been busy since our Series B fundraise announcement in April 2025, moving from proving the concept to building momentum. Our annual recurring revenue has surged almost 7x over the last twelve months, accelerating at scale beyond our 2025 pace. We now power health benefits for more than 5,000 employers, and we’re just getting started.
We struck new partnerships that let millions of small businesses sign up for Thatch directly in Gusto, Justworks, and Paychex, and deepened our integration into ADP's RUN platform. In April, we welcomed Venteur employers, brokers, and employees to our platform.
We also launched Thatch Market, giving employees access to a curated ecosystem of health and wellness services, from Lyra's mental health support to Function Health for advanced biomarker testing and health insights. Employees can pay for all of these with their tax-free healthcare dollars on Thatch.
There’s a broader change happening in healthcare
Our rapid growth reflects a fundamental shift in how employers manage health benefits. The traditional black box benefits model is becoming structurally harder to sustain, while the market for individualized benefits is moving in the opposite direction. Healthcare is getting more competitive and consumer-driven. That’s why we believe 2027 will be the best growth year ever for CHOICE (also known as ICHRA), a flexible and customizable health benefit program that serves as Thatch’s foundation.
This fundraise gives us the fuel to build faster. We’re investing in better tools to navigate healthcare for our members, deeper carrier partnerships, more payroll integrations, and an even better experience for the thousands of businesses who trust us with their healthcare.
We started Thatch nearly five years ago to create a healthcare system people love. We think it’s absurd that consumers have agency in nearly every part of the American economy, yet remain powerless when it comes to healthcare. Retirement benefits evolved to give individuals more choice and control; health benefits should do the same. It’s time for healthcare to have its 401(k) moment.
Healthcare is nearly a fifth of the American economy, operating for decades without its most important participant at the table. We're putting the consumer back at the center, one employer at a time.
