Health benefits platform Thatch reaches $1B valuation as healthcare costs surge
Thatch, a platform that lowers healthcare costs for employers while expanding plan choices for workers, has raised $108 million at a $1 billion valuation from existing investors: The General Partnership, Index Ventures, General Catalyst, and Andreessen Horowitz.
The new fundraise comes 17 months after Thatch raised a $40 million Series B at a $410 million valuation, according to PitchBook.
That’s a remarkable valuation leap for a company that isn’t, at its core, an AI startup.
Thatch grew its annual recurring revenue about seven times, co-founder and CEO Chris Ellis told TechCrunch. Ellis co-founded Thatch in 2021 with former Stripe engineering exec Adam Stevenson (pictured left).
Two major forces are driving the startup’s growth. First, employer healthcare costs keep surging, with 2027 expenses projected to jump over 8%— the largest increase since 2003. At the same time, employees are increasingly eager to access new treatments like GLP-1 drugs (weight-loss...
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