News Summary

San Francisco-based startup Thatch has raised $40 million in a Series B funding round led by Index Ventures, with participation from Andreessen Horowitz, General Catalyst, and others. The company, founded in October 2021, seeks to transform the health insurance experience for employers and employees by leveraging the Individual Coverage Health Reimbursement Arrangement (ICHRA). This funding brings Thatch’s total equity raised to $84.5 million. Thatch’s platform allows employers to offer customizable health benefits, letting employees select from various health insurance options and manage their funds via a marketplace and debit card. The startup has seen significant growth, onboarding over a thousand companies and achieving an 8x year-over-year revenue increase. Thatch plans to expand its offerings and has partnered with QuickBooks to integrate its services, with further collaborations in development. The company also recently hired Gary Daniels, former CEO of UnitedHealthcare’s Pacific Northwest division, as chief growth officer.