Thatch Raises $40M Series B led by Index Ventures, with a16z, General Catalyst, and more

At Thatch, we’re on a mission to create a healthcare system people love. Today, we’re excited to take a major step toward that vision with a $40M Series B funding round, led by Index Ventures and joined by Andreessen Horowitz, General Catalyst, ADP Ventures, SemperVirens, PeopleTech Partners, and The General Partnership.

Health benefits are broken

Most Americans are subjected to a legacy health benefits experience where their healthcare decisions are effectively made by their employer. Employers decide which insurance plan employees receive and the scope of coverage, which impacts nearly everything related to their healthcare experience: which doctors they can see, which drugs they can take, even which surgeries they can have. If they have a terrible experience with their insurance carrier, they have little recourse — they’re stuck with the insurance plan their employer chose.

That doesn’t make sense, so we’re fixing it. The future we’re creating at Thatch is one where businesses can instead provide employees with a tax-free healthcare budget to allocate the way that works best for their unique needs. Employees choose the health, dental, and vision insurance they want through Thatch, and can use any remaining funds for the healthcare expenses that are important to them, like prescriptions, therapy, preventative diagnostics, and more. If an employee is unhappy with their insurance carrier, they can switch to another. It’s a radically better experience, and it feels like magic compared to the old-school benefits experience that we’re all used to.

We’re building a new way to do healthcare

Since launching in late 2023, we’ve helped over a thousand companies — from fast-growing startups to established enterprises — offer a better, more modern healthcare experience for their teams. We also work with most major healthcare brokerages and consultants, and have developed partnerships with large HRIS systems like QuickBooks to distribute Thatch to millions of small businesses. 

We’ve also built a lot. We’re taking a different, product-first approach to the space, with a fully self-serve experience for small businesses, deep integrations with major insurance carriers, and AI layered throughout our product to help with everything from receipt matching and compliance to personalized insurance plan recommendations. We also built and launched the only first-class API service that allows partners to embed and distribute ICHRA directly within their own product.

We’re investing for the future

This $40M Series B funding allows us to double down our vision to make health benefits personal, portable, and accessible for every American. We’re investing in deeper integrations with insurance carriers and payroll systems, expanding our team, and spreading the word that there’s a new way to do healthcare. 

We’re also bringing on Gary Daniels, the former CEO for UnitedHealthcare’s Pacific Northwest division, as our Chief Growth Officer. Gary will help scale our operations, deepen our partnerships with insurers, and accelerate our growth. His leadership and industry expertise will be invaluable as we continue to transform the way companies offer health benefits.

Even with all this momentum, we’re still early in our mission. The way companies offer healthcare hasn’t meaningfully changed in decades and we have a long way to go to make the system work the way it should. If you’re passionate about fixing healthcare, we’re hiring. Join us, and let’s work together to build a healthcare system people love.