Sequoia Capital has led a $43 million funding round for Statsig, a startup that helps companies find ways to improve their applications and websites.
The investment, which Statsig announced today, also included the participation of Madrona Venture Group. It comes only six months after the startup’s previous funding round. Statsig, which didn’t generate any revenue at the time of its previous round, says that its revenue is now in the seven-figure range.
Companies use an approach known as A/B testing to improve their applications and websites. In an A/B test, a development team creates multiple versions of the same software feature and measures how well each version is received by users. The version of the feature that proves most popular is then deployed to improve the user experience.
In theory, a company could run A/B tests on every update that it releases for its application or website to find optimization opportunities. In practice, however, firms can often only carry out a limited number of A/B tests because the process takes a significant amount of time and resources. The result is that potential opportunities to improve the user experience go unnoticed.
Statsig has developed a cloud platform that reduces the amount of effort required to carry out A/B tests. According to the startup, streamlining the process enables companies to perform more extensive A/B testing than would be possible otherwise. The result is that developers can find more opportunities to improve their software products.
Statsig’s platform allows developers to launch A/B tests and measure results through a centralized interface. Data from A/B tests is visualized in graphs to ease analysis. A retailer, for example, could use the platform to evaluate whether a recent update to its website interface helped increase the percentage of users who make a purchase.
For scenarios where a company is testing multiple versions of the same feature to determine which is most effective, Statsig provides a machine learning tool that can automate the task. The tool automatically identifies the optimal version of a feature and then deploys it. If a company rolls out multiple software enhancements at once, Statsig’s platform can determine which of the enhancements played the biggest role in improving the user experience.
Companies often test a new feature with a limited subset of users while other customers continue to use the original version of the software. This effectively requires delivering two different versions of the software to customers: one that has the new feature and one that doesn’t. The process can be complicated for development teams.
As part of its platform, Statsig provides capabilities that it says make it easier for developers to manage the process. The startup argues that its approach removes the need to make extensive code modifications to facilitate A/B tests. According to Statsig, developers can enable and disable new features for users without deploying new code.
“Understanding the impact of every single feature launched naturally leads to teams shipping better products for their users,” said Statsig founder and Chief Executive Officer Vijaye Raji. “So far this process has been manual and error-prone. By automatically measuring product health in real-time, product teams can build and ship better products their users love.”
Statsig’s customers include Brex, a financial technology startup recently valued at $12.3 billion, and $10 billion productivity software maker Notion Labs, which develops a popular project management platform of the same name. Statsig says features developed with the help of its platform support hundreds of millions of users.
Statsig will use its new funding to accelerate go-to-market efforts and product development.
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