US health insurance is maddening for employees and expensive for employers. Thatch is rebuilding it around Individual Coverage Health Reimbursement Arrangements (ICHRA).
It gives each employee a Thatch card and lets them choose any health plan, and unused funds can be spent on mental health, dental, or other services through a curated marketplace.
For employers, Thatch handles compliance, payroll deductions, plan selection, and reimbursements. The business model mixes subscriptions, card‑interchange, insurance commissions, and a marketplace take rate, diversified revenue built into the workflow.
After an $38 M Series A (Jul 2024) and $40 M Series B (Mar 2025) led by Index Ventures with participation from Andreessen Horowitz and General Catalyst, Thatch's revenue grew 8× last year and is on track to 4× again.
Employers using Thatch see savings of up to 20% on benefits while employees get more choice.
Founded by Chris Ellis and Adam Stevenson, Thatch's vision is a benefits system employees actually like.
Would you trust your company's health budget to a fintech startup?
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