Developer tooling startup PostHog Inc. has raised $70 million in funding, Crunchbase reported today.
Payment processing provider Stripe Inc. led the Series D investment. It was joined by Alphabet Inc.’s GV startup fund, Formus Capital and Y Combinator, which incubated PostHog in 2020. The company is now reportedly valued at $920 million.
PostHog sells a suite of software tools that companies can use to improve their applications and websites. Several of the tools focus on easing the process of rolling out new features to an online service’s users. PostHog’s other products, in turn, ease data management tasks such as collecting information about an online store’s churn rate.
Before developers modify an application, they often test the update with a limited number of users to find issues. One of PostHog’s tools makes it possible to carry out such tests using feature flags. Those are code snippets that enable developers to quickly roll back a software update if a bug is found.
In some cases, a company might wish to test multiple versions of a new feature before making it generally available. PostHog provides a tool for that task as well. A software team could use the tool to test three different variations of a new interface design and deploy the one that garner the most positive feedback.
PostHog’s tools also ease the task of collecting data on how customers react to software updates. Developers can track the number of users who interact with a new feature, the amount of time they spend doing so and related metrics. Software teams that require additional information can create in-app surveys.
According to PostHog, its data collection and analysis tools are also useful for identifying user experience problems. They highlight issues such as interface malfunctions that negatively affect engagement. After finding a potential bug, developers can use a so-called session replay tool to gather more information. The tool simulates how users interact with a faulty feature and generates a video of the simulated interaction to ease analysis.
The company’s product portfolio also spans several other use cases. It provides a CDP, or customer data platform, that can stream information about a company’s users to analytics platforms. Another tool can be used to collect performance and cost metrics about large language models.
On occasion of the new funding round, PostHog detailed that its sales have more than tripled over the past year, off an undisclosed base, thanks to strong demand for its tools. The company’s annual recurring revenue is now in the tens of millions of dollars. It counts Mistral AI SAS and Y Combinator among its customers.
PostHog will use some of the new funding to enhance Max AI, an artificial intelligence assistant that ships with its tools. Currently, the assistant can answer questions about the company’s products and perform a limited number of other tasks. PostHog plans to build a version of Max AI that will be capable of creating feature flags and A/B tests.
The company also intends to expand its product portfolio. The development effort will focus on building tools for sales, support and marketing teams.
Image: PostHog
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