Thatch raises $40M to give employees more control of their health care choices

Tech Crunch - Apr 3rd, 2025

Thatch, a San Francisco-based startup, has secured $40 million in a Series B funding round to enhance its platform that simplifies health insurance for employers and employees through Individual Coverage Health Reimbursement Arrangements (ICHRA). The round was led by Index Ventures with participation from existing investors like Andreessen Horowitz and new investor ADP Ventures, bringing Thatch's total funding to $84.5 million since its inception in October 2021. The startup's ICHRA offering allows employees to choose their own health plans using employer-provided funds, giving them the flexibility to tailor their healthcare options to their personal needs. With partnerships like the one with QuickBooks, Thatch is embedding ICHRA setup within widely-used business software, further streamlining the process for companies.

The significance of Thatch's model lies in its potential to disrupt traditional employer-sponsored healthcare by offering a more personalized and flexible benefits system. The founders, with backgrounds in healthcare and fintech, have designed a platform that addresses both the healthcare coverage and the financial management aspects of ICHRA. This innovation could lead to a major shift in how companies approach employee benefits, making them more adaptable to individual employee needs. With over a thousand companies onboarded and a rapid growth trajectory, Thatch's approach is being recognized as a game-changer in the intersection of healthcare and fintech, positioning it as a leader in modernizing employer health benefits.

Fintech Health Insurance Index Ventures Thatch Ichra Adp Ventures Chris Ellis Adam Stevenson Series B Funding

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RATING

7.8

Fair Story

Consider it well-founded

The article provides a comprehensive overview of Thatch's recent funding and innovative approach to health insurance. It excels in clarity, readability, and timeliness, offering a clear explanation of complex concepts and recent developments. The use of credible sources and direct quotes from key stakeholders enhances its reliability, though reliance on company-provided information suggests a need for additional independent verification. While the article effectively highlights Thatch's achievements, it could benefit from a more balanced perspective by including potential challenges or critical viewpoints. Overall, the article is informative and relevant, appealing to a broad audience interested in health insurance innovations, but it could enhance engagement and impact by addressing potential controversies or challenges in greater depth.

Accuracy

The article presents several factual claims regarding Thatch's funding, product offerings, and partnerships. The claim that Thatch raised $40 million in a Series B round led by Index Ventures is supported by multiple sources. However, some details, such as the exact valuation after the Series B round and specific revenue figures, are not disclosed, which affects precision. The article accurately describes the functionality of ICHRA versus traditional HRAs, aligning with industry standards. Overall, the article is largely accurate, but some areas could benefit from additional verification, particularly regarding financial specifics and customer satisfaction metrics.

Balance

The article primarily focuses on Thatch's achievements, such as its funding success and innovative approach to health insurance. While it provides a positive perspective on Thatch's potential impact on the industry, it lacks critical viewpoints or potential challenges the company might face. The inclusion of quotes from the company's founders and partners adds depth, but additional perspectives from industry analysts or competitors could enhance balance. The article does not exhibit overt favoritism but would benefit from a broader range of viewpoints.

Clarity

The article is well-structured and uses clear, concise language to convey complex information about Thatch's funding and product offerings. It effectively explains the difference between ICHRA and traditional HRAs, making the content accessible to readers unfamiliar with health insurance terms. The logical flow from funding details to product explanation and partnerships enhances comprehension. The tone is neutral and informative, aiding in clarity.

Source quality

The article cites credible sources, such as TechCrunch and direct quotes from Thatch's co-founders and investors, which enhances its reliability. The involvement of reputable firms like Index Ventures and Andreessen Horowitz in the funding round adds credibility to the claims. However, the article relies heavily on information provided by the company itself, which could introduce bias. Including independent sources or expert opinions would further strengthen the article's source quality.

Transparency

The article is transparent about its sources, mentioning that the information was provided exclusively to TechCrunch. It clearly attributes statements to Thatch's co-founders and partners. However, it lacks transparency regarding the methodology used to verify claims, especially financial figures and valuation. The absence of disclosed revenue figures and specific customer satisfaction data suggests a need for greater transparency in these areas.