Thatch, an employer-focused well being advantages platform, has secured $40 million in a Sequence B funding spherical, bringing its whole increase to $84.5 million.
Index Ventures led the spherical, with participation from current traders Andreessen Horowitz (a16z), PeopleTech Companions, Normal Catalyst, The Normal Partnership and SemperVirens, and new investor ADP Ventures.
The corporate additionally introduced the appointment of Gary Daniels, former CEO of UnitedHealthcare Pacific Northwest, as its new chief development officer.
WHAT IT DOES
San Francisco-based Thatch offers employers with Particular person Protection Well being Reimbursement Association (ICHRA) advantages plans that enable them to set a tax-free month-to-month allowance for workers to spend on the advantages they select.
Workers select the plans out there of their space primarily based on their wants, together with medical, imaginative and prescient and dental, and employers pay a set greenback quantity every month for every worker.
Thatch CEO Chris Ellis mentioned in a LinkedIn submit that the corporate is scaling its providing and increasing its workforce following the increase.
“Medical insurance in America wasn’t designed for people. It was designed for HR departments. That is why it feels so inflexible. So complicated. So damaged,” Ellis wrote.
“If insurers offered to people, we would have completely completely different merchandise, incentives and experiences. Think about selecting your well being plan such as you select your automobile. Think about holding it if you change jobs. Think about it feeling … human. That is the world we’re constructing at Thatch.”
MARKET SNAPSHOT
Final 12 months, Thatch secured $38 million in a Sequence A funding spherical led by Normal Catalyst and Index Ventures, and in 2023, it raised greater than $6 million in funding throughout a pre-seed and seed spherical.
Different firms targeted on the employer advantages market embody digital psychological well being supplier Lyra Well being, digital healthcare and care and advantages navigation firm Accolade and Personify Well being, which presents well being, navigation, advantages and wellbeing experiences in addition to data-driven personalization.
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