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Thatch provides a platform for employers to administer Individual Coverage Health Reimbursement Arrangements (ICHRAs). It allocates tax-free healthcare allowances, enabling employees to select personalized health, dental, and vision plans from a marketplace. A debit card facilitates using remaining funds for medical costs, offering flexibility over traditional employer benefits.
Co-founded in October 2021 by CEO Chris Ellis and President Adam Stevenson, Thatch stemmed from their insight that employer-sponsored healthcare constrained employee choice. They viewed ICHRAs as a novel way to democratize benefits, empowering companies with adaptable plans and employees with personalized coverage.
Thatch serves employers modernizing benefit offerings and employees seeking control. The company envisions transforming the health insurance landscape by decoupling coverage from employment. This fosters a system where individuals actively choose optimal plans, redefining the health benefits experience.
Thatch has raised $87.0M across 4 funding rounds.
Thatch has raised $87.0M in total across 4 funding rounds.
Thatch is a San Francisco-based healthtech startup founded in 2021 that provides an all-in-one platform for personalized employee healthcare benefits using Individual Coverage Health Reimbursement Arrangements (ICHRAs). Employers set a budget, and employees customize their coverage across insurance plans and wellness services, simplifying administration while cutting costs by an average of 11% per employee compared to traditional plans.[1][3][4][5] The platform serves startups, small businesses, nonprofits, and enterprises—ranging from AI companies to large teams—by abstracting ICHRA complexities, integrating with any payroll provider, and offering tools like personalized plan selection and tax incentives.[2][3][5] With 70 employees and $38M in Series A funding raised in 2024 from Index Ventures, General Catalyst, a16z, and others, Thatch has onboarded hundreds of customers since its 2023 launch, accelerating growth through seamless payroll integrations via partners like Finch.[1][2][3]
Thatch was co-founded in 2021 by Chris Ellis and Adam Stevenson, both with deep experience in fintech and healthcare from scaling high-impact companies.[2][4][6] Stevenson, a former engineering leader at Stripe, drew from a decade of building fast-growing Silicon Valley startups to address the frustrations of outdated health benefits administration.[6] The idea emerged amid the 2020 ICHRA law, which enabled employers to fund individual insurance tax-free, but its complexity left small businesses overburdened—losing hours yearly on management without delivering personalized care.[3][4][5] Early traction came from solving payroll integration challenges; using Finch's API, Thatch launched 10 months faster, automating deductions across 200+ systems without custom engineering, proving viability for modern startups seeking simple, effective benefits.[2] This pivot from traditional group plans to flexible budgets marked a pivotal moment, fueling rapid adoption post-2023 public launch.[2][3]
Thatch stands out in the fragmented health benefits market through these key strengths:
Thatch rides the ICHRA wave post-2020 legislation, capitalizing on the "unbundling of payroll from benefits" trend amid rising healthcare costs and demands for portable, personalized coverage in a gig/remote-first economy.[2][3] Timing is ideal: traditional group plans face annual premium hikes, while startups/nonprofits seek competitive perks without HR overhead—Thatch's fintech-healthtech fusion (e.g., automated reimbursements) makes ICHRA accessible, disrupting employer-tied insurance.[3][5] Market forces like AI-driven startups scaling fast, labor shortages emphasizing benefits, and regulatory shifts favor Thatch, positioning it to influence a shift toward consumer-choice models where coverage follows people, not jobs—potentially pressuring incumbents and insurers to prioritize long-term health investments.[3] By enabling SMBs and enterprises alike, Thatch democratizes top-tier benefits, boosting the startup ecosystem's talent attraction in high-cost regions like San Francisco.[1][2][4]
Thatch is poised to dominate modern benefits as ICHRA adoption surges, with its $38M war chest fueling team expansion, platform scaling, and customer acquisition to become the default for forward-thinking companies.[3] Expect acceleration in enterprise wins and Marketplace growth, shaped by trends like AI-optimized personalization, further payroll unbundling, and portable benefits amid job fluidity. Its influence could evolve to reshape U.S. healthcare—decoupling insurance from employment for true affordability—building on early traction to deliver the flexible, employee-first experience Thatch pioneered from day one.[3][5]
Thatch has raised $87.0M in total across 4 funding rounds.
Thatch's investors include Index Ventures, 2.12 Angels, AAF Management Ltd., Kevin Hartz, AME Cloud Ventures, Andreessen Horowitz, Angelic Ventures, Brainchild, Coinbase Ventures, Matt Ocko, DFJ, Digital Currency Group.
Thatch has raised $87.0M across 4 funding rounds. Most recently, it raised $40.0M Series B in April 2025.
