Former Facebook Team Launches Features with $10.4M Seed Funding

Statsig Secures Series A Funding to Democratize A/B Testing

Statsig is empowering product teams with functionalities mirroring those used to fuel growth at Facebook, enabling data-driven product development and faster decision-making.

The Seattle-based firm announced a $10.4 million Series A funding round on Thursday. Sequoia Capital spearheaded the investment, with contributions from Madrona Venture Group and a cohort of individual investors.

Investor Participation

Notable individual investors include Robinhood CPO Aparna Chennapragada, Segment co-founder Calvin French-Owen, Figma CEO Dylan Field, Instacart CEO Fidji Simo, DoorDash executive Gokul Rajaram, Code.org CEO Hadi Partovi, and a16z general partner Sriram Krishnan.

Vijaye Raji, Founder and CEO, initiated the company in February alongside seven former Facebook colleagues. However, the concept originated over a year prior to the company’s founding.

Raji explained to TechCrunch that during his tenure at Facebook, internal applications such as Gatekeeper, Quick Experiments, and Deltoid proved highly effective in A/B testing. Recognizing a market need, the Statsig team aimed to recreate these capabilities externally.

Platform Capabilities

Statsig’s platform facilitates rapid product experimentation and analysis of user responses to new features. Tools like Pulse, Experiments+ and AutoTune support numerous experiments weekly.

Business metrics are central to guiding product teams in developing and launching successful products for their customer base.

The newly acquired funding will be allocated to expanding the team across design, product, data science, sales, and marketing. The company has already grown to a team of 14 since its inception in February.

“We are currently addressing a backlog of feature requests from our customers, and scaling our team will allow us to deliver on these demands,” Raji stated.

Pricing and Adoption

Statsig operates without subscription or upfront fees, currently serving millions of end-users monthly for clients including Clutter, Common Room, and Take App.

A free tier remains available for feature exploration, alongside a Pro tier priced at 5 cents per thousand events, scaling with customer growth.

Raji anticipates adoption through both direct downloads by developers and engineers, and through organic referrals. This “bottom-up” adoption strategy is a key focus for Statsig, with the company now engaging with larger enterprise clients.

Competitive Advantage

While acknowledging the presence of competitors, Raji emphasizes Statsig’s focus on providing insights and linking metrics directly to features, differentiating it from competitors primarily focused on feature sets.

Furthermore, Statsig offers automated analysis, contrasting with the manual setup and analysis required by other products.

Sequoia Capital’s Perspective

Mike Vernal, a partner at Sequoia, previously worked with Raji at Facebook, describing him as an exceptional engineer.

Vernal observed that many companies prioritize sales and marketing over product development due to the lack of precise data for planning.

He believes Statsig addresses this gap by providing the necessary measurement tools, eliminating the need for makeshift solutions.

“Statsig uniquely provides the ability to not only determine preference between options like button colors, but also to assess the impact of experiments on key metrics such as new user growth, retention, and monetization,” Vernal explained.

“The capacity to answer comprehensive questions and understand the impact of any feature on all metrics represents a significant advancement, enabled by the maturation of the data stack.”