Thatch, an employer-focused health insurance platform, announced it has secured $38 million in a Series A funding round led by General Catalyst and Index Ventures.
New investors SemperVirens and General Partnership participated in the round, along with existing investors Andreessen Horowitz (a16z) and Avid Ventures.
What it does
Thatch offers an ICHRA benefit plan that allows employers to set a monthly allowance that employees can spend on the benefits of their choice.
Employees choose a plan available in their area based on their needs, and employers pay a fixed amount per employee per month.
The California-based company plans to use the funding to expand its workforce, accelerate growth and expand its technology.
“We are pleased to support the Saatchi team as they reimagine the future of health insurance,” Alex Tran, managing director at General Catalyst, said in a statement.
“In the last year, they’ve hired great people, built a strong following among customers, and shipped a product quickly. Thatch offers a strong value proposition to customers: employees have more choice and quality in their health care, and employers have more visibility into spending. In the long term, we hope Thatch will help us move one step closer to a more ideal American health care driven by fundamental market forces like quality, transparency and cost.”
Market Snapshot
Many digital health companies are focusing on the employee benefits market.
Personify Health delivers data-driven personalization as well as health, navigation, benefits and wellbeing experiences. Personify was formed through a $3 billion merger between Virgin Pulse, a mobile-first employee health and engagement company, and HealthComp, a benefits and analytics platform.
Other companies include Lyra Health, an employer-focused digital mental health provider, and Accolade, a virtual healthcare, care and benefits navigation company.
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