Thatch, a health benefits startup, has raised $38m in a Series A funding round led by Index Ventures and General Catalyst.
The $38m round saw participation from several prominent investors, including SemperVirens, The General Partnership, Andreessen Horowitz (a16z), and Avid Ventures, according to InsurTech Insights.
Founded in 2021, Thatch’s platform focuses on simplifying health benefits administration for businesses and employees.
The platform is designed to streamline the complexities of the Individual Coverage Health Reimbursement Arrangement (ICHRA) law, allowing employers to make tax-free contributions to health insurance plans.
Employees can then choose their own health insurance, offering more flexibility and control over their healthcare choices.
With the new funding, Thatch plans to scale its operations and expand its services, addressing growing demand from businesses and individuals.
The company aims to continue innovating in the health benefits space, providing more cost-effective and transparent solutions.
Thatch’s CEO and co-founder Chris Ellis highlighted the significance of this funding in a statement, “There’s finally momentum towards a health insurance market that serves real people’s needs. We’re seeing interest from employers, brokers, and certainly employees who all recognise the singular opportunity to get high-quality healthcare at a reasonable, transparent cost. With the support of this funding, we’re ready to scale operations to meet the exploding demand.”
Jahanvi Sardana, partner at Index Ventures, also shared her enthusiasm, stating, “Healthcare is the last major financial decision still controlled by employers but, like the shift from pensions to 401(k)s empowered individuals, healthcare is due for the same revolution. Thatch is driving this shift by harnessing free market forces in the individual market and pooling risk across businesses to create collective buying power.”
The Series A round follows Thatch’s earlier funding, bringing the company’s total capital raised to $44m as it seeks to redefine the health benefits landscape.
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