thatchan employer-focused health benefits platform secured $40 million in the Series B funding round, bringing the total increase to $84.5 million.
Index Ventures led the round with participation from existing investor Andreessen Horowitz (A16Z), Peopletech Partners, General Catalyst, The General Partnership and Sempervirens, and new investor ADP Ventures.
The company has also announced that it has appointed Gary Daniels, former CEO of United Healthcare Pacific Northwest, as its new chief growth officer.
What it does
San Francisco-based Thatch offers employers individual compensation and compensation reimbursement agreements (ICHRA) benefits plans that can be spent on employee-selected benefits.
Employees choose available plans in their area based on their healthcare, vision, dental and other needs, and employers pay each employee a monthly amount.
Thatch CEO Chris Ellis said in A LinkedIn Post The company is expanding its provision and expanding its labor force after pay raises.
“American health insurance wasn’t designed for humans. It was designed for the HR department. So I feel it’s very strict. It’s so confusing. It’s so broken,” Ellis wrote.
“If an insurance company is sold to individuals, we have a completely different product, incentive, and experience. Imagine choosing your health plan that makes you choose your car. Imagine maintaining it when you switch jobs.
Market Snapshot
Thatch was secured last year $38 million in the Series A funding round led by General Catalyst and Index Ventures raised more than $6 million in pre-seed and seed rounds in 2023.
Other companies focus on Employer benefits markets include digital mental health providers Lyra Health, Virtual Healthcare and Care and Benefit Navigation Company Accolade and Personify Health.
