Statsig secures $100M in funding for its product testing platform – News

Statsig Inc., a startup that helps developers measure how well new features are received by users, has raised $100 million in funding.

The Series C investment was announced today. ICONIQ Growth led the deal with participation from Sequoia and Madrona. According to Fortune, Statsig raised the capital after rejecting an acquisition offer from Datadog Inc., which today announced that it has bought a competing software testing startup.

Before developers roll out a major update to an application, they usually test the change with a limited number of users to ensure that everything works as expected. Statsig provides a platform that reduces the amount of work involved in the task. It allows developers to make new features available to testers, collect data on how well the features are received and analyze that data.

Statsig can evaluate software changes in several ways. The platform provides a tool for running A/B tests, which trial several versions of a new feature side-by-side to determine which one is most popular among users. Statsig also supports other evaluation methods such as contextual multi-armed bandit tests. In such projects, the test is customized based on each participating user’s preferences.

Rolling out a new feature to an application can involve a significant amount of manual work. To speed up the process, Statsig provides a tool for creating feature flags. Those are code snippets that make it possible to deploy a new application component or an A/B test in a fraction of the time the task usually requires. Feature flags can also disable application components, which is useful for rolling back erroneous updates.

Statsig can use a company’s cloud data warehouse to analyze the results of feature tests. This arrangement removes the need to sync the information to an external system for processing, which eases administrators’ work. It also avoids the security risks associated with moving records out of a data warehouse.

The platform visualizes test results in dashboards to ease analysis. It also provides a tool called Metrics Explore that allows users to manually search for patterns in the data. An enterprise software company, for example, could filter the results of an A/B test to determine how it affected its 100 largest 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 wrote in a blog post today. “Our platform helps teams move quickly without breaking things.”

Statsig says that its platform is used by Microsoft Corp., Atlassian Corp. OpenAI and other major tech firms. The company reportedly reached $40 million in annual recurring revenue ahead of its funding round. Statsig, which is now worth $1.1 billion, will use the capital to hire more employees and extend its platform’s feature set.

Image: Statsig