Thatch Secures $108M in Funding at $1B Valuation as It Gains Momentum in Shifting Employer Healthcare Models
Thatch, a platform helping employers transition from traditional group health plans to consumer-directed models, has raised $108 million in new funding at a $1 billion valuation. The round was led by venture firms including The General Partnership and Andreessen Horowitz, with participation from major companies like ADP Ventures and Eli Lilly. The company's revenue has grown nearly seven-fold over the past year, serving more than 5,000 employers who are adopting Thatch’s model to give employees control over their healthcare spending. This shift is driven by rising costs of traditional plans and a growing recognition that one-size-fits-all coverage often fails diverse employee needs. Thatch enables employers to set defined health budgets for each worker, allowing them to choose individual plans tailored to personal preferences such as doctors or prescriptions. The platform also integrates with major payroll providers like ADP and Paychex, making it easier for companies to adopt the model without overhauling their benefits infrastructure.
