Thatch Raises $108M Series C at a $1B Valuation to Build a Healthcare System People Love

Thatch, building a healthcare system people love, led by Chris Ellis and Adam Stevenson, has raised a $108 million Series C funding round, bringing Thatch's valuation to $1 billion. The funding comes from The General Partnership, Index Ventures, Scale Venture Partners, General Catalyst, Andreessen Horowitz, Avid Ventures, Quiet Capital, SemperVirens, and QuantumLight, with strategic participation from Eli Lilly and Company, ADP Ventures, and Paychex.

Putting Consumers in Control.

Thatch aims to give consumers greater control over the $6 trillion spent annually on healthcare by helping companies replace traditional health benefits with flexible health budgets.

Instead of selecting specific insurance plans, employers provide employees with funds to choose coverage that fits their needs, with remaining budgets available for services such as therapy, cash-pay GLP-1s, and preventive diagnostics.

The model is designed to shift healthcare purchasing power toward consumers, creating greater competition among insurers and providers based on what people choose to buy.

Momentum Since Series B.

Since its Series B in April 2025, Thatch has grown rapidly, with annual recurring revenue increasing nearly 7x over the past year. The platform now powers health benefits for more than 5,000 employers.

Thatch has expanded partnerships with Gusto, Justworks, Paychex, and ADP, while also integrating Venteur’s employers, brokers, and employees.

The company also launched Thatch Market, giving employees access to health and wellness services, including mental health support from Lyra and biomarker testing from Function Health, all payable through tax-free healthcare dollars on Thatch.

A Shift Toward Consumer-Driven Healthcare.

Thatch’s growth reflects a broader shift toward more individualized, consumer-driven health benefits. The company expects 2027 to be a strong growth year for CHOICE, also known as ICHRA, the flexible health benefit model at the core of its platform.

The new funding will support better healthcare navigation tools, deeper carrier partnerships, additional payroll integrations, and improved services for employers and employees.

Thatch’s broader goal is to give consumers greater choice and control over healthcare spending, similar to how 401(k) plans expanded individual control over retirement benefits.

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