Highlights:
- Statsig offers multiple ways to evaluate software changes. Its platform includes an A/B testing tool that allows developers to compare different versions of a feature side by side to identify which one user prefers.
- Statsig reports that its platform is used by major tech companies including Microsoft Corp., Atlassian Corp., and OpenAI.
Statsig Inc. raised USD 100 million in the funding. The startup helps developers evaluate user responses to new features.
The investment, announced recently, was led by ICONIQ Growth with participation from Sequoia and Madrona. According to Fortune, Statsig raised the funds after turning down an acquisition offer from Datadog Inc., which coincidentally revealed its own acquisition of a competitor software testing startup.
Before launching major updates, developers often test new features with a small group of users to ensure smooth performance. Statsig streamlines this process by offering a platform that enables feature rollout to testers, data collection on user engagement, and in-depth analysis of the results.
Statsig offers multiple ways to evaluate software changes. Its platform includes an A/B testing tool that allows developers to compare different versions of a feature side by side to identify which one users prefer. In addition to A/B testing, Statsig supports more advanced methods like contextual multi-armed bandit tests, which tailor experiments to individual users based on their preferences.
Introducing a new feature to an app often involves time-consuming manual tasks. To simplify and accelerate this process, Statsig provides feature flag tools—small code snippets that enable rapid deployment of new components or A/B tests. These flags can also be used to disable features, making it easier to quickly roll back problematic updates.
Statsig integrates with a company’s cloud data warehouse to process and analyze test results directly at the source. This eliminates the need to transfer data to external systems, reducing administrative overhead and minimizing potential security risks.
The platform presents test results through intuitive dashboards to simplify analysis. It also includes a tool called Metrics Explore, which enables users to manually dig into the data and identify trends. For instance, an enterprise software company could filter A/B test results to see how a change impacted its top 100 customers.
“With Statsig, teams no longer need to cobble together a dozen disconnected tools just to release a feature and see how it performed,” Founder and Chief Executive Vijaye Raji reported. “Our platform helps teams move quickly without breaking things.”
Statsig reports that its platform is used by major tech companies including Microsoft Corp., Atlassian Corp., and OpenAI. Prior to its latest funding round, the company reportedly achieved USD 40 million in annual recurring revenue. Now valued at USD 1.1 billion, Statsig plans to use the new funding to expand its team and enhance its platform’s capabilities.
