Thatch hits $1B valuation with $110M Series C for health-budget benefits
What's the deal? Thatch has raised US$69.9M Series C at US$647.1M valuation, the health-benefits startup announced on September 15, 2026. The General PartnershipDealroom has a profile for this one. Try Dealroom →, Index Ventures, Scale Venture PartnersDealroom has a profile for this one. Try Dealroom →, General Catalyst, and Andreessen Horowitz took part.
What does Thatch do? The company lets employers swap traditional insurance plans for health budgets, giving employees money to buy the plan that fits their life. Staff can spend what's left on therapy, cash-pay GLP-1s, preventative diagnostics, and other services through Thatch Market.
The numbers. Annual recurring revenue has grown nearly 7x over the past year, and Thatch now powers benefits for more than 5,000 employers — up from proving the concept at its Series B in April 2025.
Who else is in? New strategic investors Eli Lilly and CompanyDealroom has a profile for this one. Try Dealroom →, ADP VenturesDealroom has a profile for this one. Try Dealroom →, and PaychexDealroom has a profile for this one. Try Dealroom → joined, alongside Avid VenturesDealroom has a profile for this one. Try Dealroom →, Quiet Capital, SemperVirensDealroom has a profile for this one. Try Dealroom →, QuantumLightDealroom has a profile for this one. Try Dealroom →, and GV. Founded in 2021 by Chris Ellis and Adam Stevenson, Thatch came out of stealth in 2023 with $6 million in early funding.
What's the endgame? Thatch wants to put the $6 trillion in annual US healthcare spend into consumers' hands. The new capital will fund navigation tools for members, deeper carrier partnerships, and more payroll integrations, adding to existing ties with Gusto, Justworks, and ADPDealroom has a profile for this one. Try Dealroom →'s RUN platform.
Why now? Thatch is betting on CHOICE — also known as ICHRA — a flexible benefit program at its core. It calls the traditional "black box" model structurally harder to sustain as demand shifts toward individualised benefits.
The signal: The round sits near the 91st percentile for US health Series C deals all-time, a sign of investor conviction in consumer-driven benefits. The presence of Eli Lilly, ADP, and Paychex shows established healthcare and payroll players are backing the shift too.
Read more: TechCrunch, thatch.com
Image credit: Thatch
