Thatch Raises $108 Million at $1 Billion Valuation

Thatch provides technology for U.S. employers shifting from traditional group health insurance to an individual coverage health reimbursement arrangement, or ICHRA. Instead of selecting a single plan for their workforce, employers set a tax-free benefits budget and workers choose individual coverage based on their doctors, prescriptions and family needs. The model can make corporate healthcare spending more predictable while expanding employee choice. Thatch connects major insurers, payroll providers and benefits platforms, allowing companies to adopt the approach without rebuilding their benefits infrastructure.

Thatch said on Sept. 15, 2026, that it raised $108 million in a Series C funding round at a $1 billion valuation, making the health-benefits platform a unicorn. The General Partnership led the financing, with participation from Index Ventures, General Catalyst, Andreessen Horowitz and strategic investors including ADP Ventures, Paychex and Eli Lilly. The company said revenue had increased nearly sevenfold over the previous 12 months and more than 5,000 employers were using its platform, indicating growing demand for employee-directed health benefits.