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Net Revenue Retention (NRR)HealthTechSeries B

Net Revenue Retention (NRR) for HealthTech at Series B

2026 data · Sample size: 197 · Source: Tomasz Tunguz Venture Data 2025
25th %ile
96%
Median
140.7%
75th %ile
193.3%
90th %ile
260.6%
▲Trending up year-over-year

About This Metric

Revenue retained from existing customers including expansion, contraction, and churn. Above 100% means growth without new customers.

(Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100

Higher is better · Unit: percentage

How to Improve

Develop usage‑based triggers that automatically suggest plan upgrades when customers approach limits. Build a multi‑product strategy that enables cross‑sell opportunities within existing accounts. Create enterprise tier features that justify higher price points for mature accounts. Implement customer health monitoring that surfaces expansion opportunities alongside churn risk. Train customer success managers on commercial skills to drive revenue conversations.

Ehsan's Analysis

HealthTech NRR is typically 105-115% — lower than top SaaS because healthcare contracts are often fixed-price, multi-year agreements with limited expansion triggers. The expansion that does occur comes from adding new departments (radiology after cardiology), new facilities (second hospital in the system), or new modules (adding analytics to a core EHR). Epic's NRR exceeds 125% because health systems continuously add modules and connected hospitals. For healthtech startups, NRR above 110% is a strong signal that you have built a platform, not just a product. Below 105%, you are selling point solutions that do not expand — which means growth depends entirely on new logos. The NRR playbook for healthtech: design your product as modules from day one, sell the first module at a loss if necessary, and build the expansion motion into the implementation timeline. "Phase 2" should be contractually discussed during Phase 1 implementation.

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Ehsan Jahandarpour

AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations

Frequently Asked Questions

What is a good Net Revenue Retention (NRR) for HealthTech companies at Series B stage?
The median Net Revenue Retention (NRR) for HealthTech companies at the Series B stage is 140.7%. Top‑quartile companies (75th percentile) significantly outperform this baseline. The most important factor is consistent improvement over time rather than hitting any single target number.
How does Net Revenue Retention (NRR) differ by company stage in HealthTech?
Net Revenue Retention (NRR) typically improves as HealthTech companies mature from seed through growth stage. Earlier‑stage companies should benchmark against stage‑appropriate peers rather than comparing themselves to mature companies.
How often should HealthTech companies measure Net Revenue Retention (NRR)?
HealthTech companies at the Series B stage should track Net Revenue Retention (NRR) monthly with quarterly deep‑dive analysis. Set up automated dashboards and alerts for significant deviations from your baseline.
What factors most impact Net Revenue Retention (NRR) in the HealthTech sector?
In HealthTech, the primary factors impacting Net Revenue Retention (NRR) include product‑market fit maturity, competitive landscape intensity, customer segmentation strategy, pricing optimization, and operational efficiency. Series B‑stage companies should focus on the one or two highest‑leverage factors rather than trying to optimize everything simultaneously.
How does Net Revenue Retention (NRR) for HealthTech compare to cross‑industry benchmarks?
HealthTech Net Revenue Retention (NRR) benchmarks can differ significantly from cross‑industry averages due to factors specific to the HealthTech vertical including customer acquisition dynamics, competitive intensity, and typical deal sizes. Always compare against industry‑specific benchmarks rather than broad averages for meaningful insights.

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