Thatch raises $108 million, reaches $1B valuation as healthcare costs climb
Thatch, a startup making employer healthcare less expensive and more flexible, just reached a $1 billion valuation after raising $108 million from investors like The General Partnership.
That's more than double its previous value just 17 months ago, fueled by a massive jump in recurring revenue.
The timing is key, as employer healthcare costs are expected to climb over 8% by 2027 and companies are looking for smarter ways to cover treatments that typical plans don't include.
Thatch uses ICHRA and AI recommendations
Thatch uses something called ICHRA: basically, it lets employers give workers a set budget to pick their own health plans from Thatch's platform.
This skips the yearly back-and-forth with insurance companies and gives employees more choices while encouraging insurers to compete for their business.
With AI-powered plan recommendations, Thatch stands out from rivals like Take Command and Zorro as more companies shift toward personalized health benefits.