San Francisco-based, technology-driven health benefits platform Thatch has raised $108 million in new funding at a $1 billion valuation, the company announced on September 15, 2026. The investment round includes The General Partnership, Index Ventures, General Catalyst, and Andreessen Horowitz, with participation from ADP Ventures, Paychex, Eli Lilly and Company, and several additional backers. The announcement arrives as Thatch reports nearly sevenfold revenue growth over the past year and adoption by more than 5,000 employers.
Funding Details and Investor Support
The new capital will support Thatch as it scales a consumer-directed alternative to traditional group health plans. The $108 million round at a $1 billion valuation drew backing from The General Partnership, Index Ventures, General Catalyst and Andreessen Horowitz. It also included participation from ADP Ventures, Paychex, Eli Lilly and Company, Scale Venture Partners, QuantumLight, SemperVirens, Quiet Capital and Avid Ventures.
Rapid Growth and Employer Demand
Thatch said its revenue has grown nearly seven times in the past year, while more than 5,000 employers now rely on the platform to give workers greater control over healthcare. The company attributes this momentum to a broader frustration with rising healthcare costs and the limits of one-size-fits-all group plans. Employers are increasingly willing to move from choosing a single plan for everyone to giving employees a budget and the ability to select coverage based on their own needs.
How the Consumer-Directed Model Works
Under the Thatch approach, employers set a defined health benefits budget and employees use tax-free dollars to choose an individual health plan suited to their doctors, prescriptions, family situation and preferred coverage type. Workers can also direct remaining funds toward eligible healthcare expenses such as GLP1 therapies and mental health support. This structure gives employers more predictability over spending while placing the purchasing decision in the hands of the person actually using the healthcare.
Perspectives from Leadership and Investors
Chris Ellis, co-founder and chief executive of Thatch, said healthcare has long been a major purchase that people never got to make. He explained that giving people control over healthcare dollars prompts them to ask what something costs, a behavior change the new funding is built to scale. Jahanvi Sardana, partner at Index Ventures, added that consumer markets get rebuilt around the individual and that Thatch is applying this shift to healthcare, with AI supporting more personalized care navigation.
Distribution and Infrastructure
Thatch has built infrastructure that connects employers and employees to individual coverage while integrating with major health insurance carriers, payroll providers and benefits platforms. Its distribution network includes partnerships with ADP, Paychex, Gusto and QuickBooks, which help the company reach employers through tools they already use. These relationships allow organizations to adopt a consumer-directed model without rebuilding their existing benefits infrastructure, reducing friction in the transition.
The new funding round underscores a broader movement toward giving employees more direct control over healthcare spending and decision-making. By combining predictable employer budgets with individual plan choice and an expanding distribution network, Thatch aims to modernize how healthcare benefits are structured for thousands of employers. With fresh capital at a $1 billion valuation and strong revenue momentum, the company is positioned to broaden its infrastructure and accelerate the shift to consumer-directed health benefits.