Health benefits platform Thatch reaches $1B valuation as healthcare costs surge

Thatch , a platform that lowers healthcare costs for employers while expanding plan choices for workers, has raised $108 million at a $1 billion valuation from existing investors: The General Partnership, Index Ventures, General Catalyst, and Andreessen Horowitz.

The new fundraise comes 17 months after Thatch raised a $40 million Series B at a $410 million valuation, according to PitchBook.

That’s a remarkable valuation leap for a company that isn’t, at its core, an AI startup.

Thatch grew its annual recurring revenue about seven times, co-founder and CEO Chris Ellis told TechCrunch. Ellis co-founded Thatch in 2021 with former Stripe engineering exec Adam Stevenson (pictured left).