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Thatch hits billion-dollar valuation by shrinking what employers spend on health plans
Thatch, founded in 2021 by Chris Ellis and former Stripe engineering executive Adam Stevenson, raised $108 million at a $1 billion valuation from existing backers The General Partnership, Index Ventures, General Catalyst and Andreessen Horowitz. The round arrives 17 months after a $40 million Series B at a $410 million valuation, according to PitchBook. Ellis said annual recurring revenue grew about seven times.
The company's growth rests on outflow rather than income. Employer healthcare expenses are projected to rise more than 8% in 2027, the largest jump since 2003, and Thatch uses the ICHRA model created by federal regulation in 2020 to fix a per-worker budget instead of annual carrier negotiations. Healthier employees who pick cheaper plans keep the remainder on a Thatch debit card for eligible expenses such as GLP-1 drugs.
Source: TechCrunch Startups · September 15, 2026