Easily Change SaaS Pricing with Stigg

Stigg: A Scalable Monetization Platform for SaaS Companies

Stigg positions itself as the premier, scalable monetization solution designed for contemporary billing systems. Essentially, this startup, which recently secured $17.5 million in Series A funding, empowers SaaS businesses to refine their pricing strategies.

This includes crafting effective pricing pages, determining feature and usage allocations for each plan, and efficiently managing their customer base.

Founders' Background and Motivation

Dor Sasson and Anton Zagrebelny, the founders of Stigg, previously collaborated at New Relic. Sasson shared that their experience at New Relic sparked the idea for Stigg.

They were instrumental in early attempts to monetize AI features within the company, facing significant challenges in transitioning from a seat-based model to usage-based pricing.

The complexity of implementing such a substantial pricing shift within a large public company highlighted a clear market need.

Seed Funding and Current Users

Recognizing this gap, the founders embarked on creating Stigg. They initially raised $6.4 million in seed funding in 2021, which was publicly announced in 2022.

This funding came from investors like Unusual Ventures and Emerge Ventures, alongside several notable angel investors.

Currently, Stigg’s user base includes prominent companies such as AI21labs, Cloudinary, PagerDuty, Miro, and Webflow.

The Impact of AI on SaaS Pricing

Sasson emphasized that the rise of AI-driven features is prompting many SaaS companies to re-evaluate their existing pricing structures.

AI is fundamentally altering the landscape of software sales and monetization.

Traditionally, software was sold primarily through subscription models, often with limited consumption-based elements. Now, companies are exploring outcome-based and work-based pricing models.

Decoupling Commercial Aspects from Engineering

Historically, pricing models and feature entitlements have been deeply embedded within application code, creating significant obstacles when modifications are required.

Modernizing this infrastructure demands the right tools for engineers to ensure speed and flexibility in implementation.

Stigg provides a management console for go-to-market teams, enabling them to adjust pricing plans without requiring extensive code revisions from developers.

Core Principle of Stigg

The central concept behind Stigg is to separate financial and commercial considerations from the hard-coded configurations of features, usage, and user experiences.

This allows engineering teams to support the business in introducing innovative packaging and pricing strategies without being burdened by the technical implications.