The $1M Revenue Club: What Sets These HealthTech Startups Apart?

73% of HealthTech companies generate revenue. Thereof only 19% of HealthTech startups make more than $1 million a year. So, what are they doing that others aren’t?

The HealthTech sector is booming, with thousands of startups worldwide building digital tools to reshape healthcare. But when it comes to financial performance, most are still chasing their first major milestone.

According to the R2GConnect HealthTech Startup Nation Report (April 2025), just 19% of revenue-generating HealthTech startups make more than $1 million in annual revenue. That means around 4 out of 5 revenue-generating companies in the space are still figuring out how to scale beyond survival.

So who’s breaking through and why?

Let’s unpack what the data tells us about the rarefied “$1M Revenue Club” and the common factors that set these high-earning startups apart.

The Reality Check: Most Startups Are Still Small Earners

Before we explore what makes the $1M earners different, here’s a snapshot of the broader revenue landscape:

• 73% of HealthTech startups generate some revenue. But out of them:
  • Only 15% bring in between $1M–$5M annually.
  • A mere 4% exceed $5M per year.
• 27% report no revenue at all.

This paints a clear picture: earning real, scalable revenue in HealthTech is hard and rare.

But it’s not random.

Let Corporates Pay: The Business Models That Work

Revenue doesn’t happen in a vacuum, it’s directly tied to how you structure your business model. And among top earners, one pattern stands out: corporate-funded models dominate.

Here’s what the data shows:

• Startups that adopt “Let Corporates Pay” models (e.g., enterprise SaaS, white-labeled solutions, or B2B2C partnerships) are significantly more likely to generate revenue.
• These models consistently outperform those that rely on direct consumer payments, public reimbursement, or employer buy-in.

Why?

Because corporate clients think hospitals, pharma, MedTech, or insurance providers offer:

• Larger contracts and longer deal terms
• Faster scaling through enterprise deployments
• Credibility that helps secure follow-on deals

That doesn’t mean D2C or public-pay startups can’t win, but it does mean they face a steeper climb toward $1M.

The Certification Effect: CE & FDA as Revenue Catalysts

It turns out that regulation isn’t just a legal requirement, it’s a revenue driver.

Startups with CE or FDA certification are more likely to report $1M+ annual revenues. In fact:

• Certified companies are 2x more likely to report $1M+ funding.
• They also show an 8% higher share of $1M+ annual revenue compared to uncertified peers.

Why does certification matter?

• It unlocks access to clinical settings, reimbursed pathways, and institutional buyers.
• It provides credibility that helps win B2B clients and regulators.
• It signals maturity; investors and partners take certified companies more seriously.

While securing a CE mark or FDA clearance isn’t cheap or fast, the payoff is real.

For high earners, certification is often not a milestone: it’s a launchpad.

Team Size and Execution Power

What about the human side of the equation?

The report shows that most HealthTech startups operate with lean teams, typically between 10–50 employees. But high-revenue companies often leverage larger or more strategically built teams.

Key insights:

• Teams of 10–50 employees are most common among $1M+ earners.
• These companies scale their ops and sales functions early.
• They often include regulatory, clinical, and go-to-market specialists from the start.

That doesn’t mean bigger is always better, but it does mean execution matters.

The Role of Founder Experience

While there isn’t a clear-cut relationship between founder experience and revenue generation, it’s worth noting:

• Serial founders report a 6% higher likelihood of hitting $1M+ in annual revenue.
• Experienced founders tend to assemble stronger teams, identify scalable business models earlier, and navigate regulatory hurdles more efficiently.

Taken together, founder experience is not a guarantee, but it’s clearly a multiplier.

The $1M Threshold Is a Signal, Not a Finish Line

Crossing the $1M mark in annual revenue isn’t just about financial sustainability; it’s a signal of market validation. It tells investors, buyers, and the ecosystem: “This solution works. There’s a market for it. We’re ready to grow.”

But getting there takes more than ambition. It takes:

• The right model
• The right credentials
• The right team
• And the right playbook

For startups still on the climb, the message is clear: $1M isn’t reserved for the lucky few it’s achievable for those who build with precision, proof, and purpose.

Want to explore more success benchmarks? Download the full HealthTech Startup Nation 2025 report (scroll to mid-page) or join R2GConnect to connect with 8,700+ global HealthTech innovators and partners.