Statsig Raises $100M at $1.1B Valuation to Build Unified Product Development Platform Amid AI Shift

Statsig Raises $100M at $1.1B Valuation to Streamline Product Development Amid AI Changes

Statsig, a Bellevue-based company founded by a former Facebook engineering lead, has secured $100 million in Series C funding, reaching a valuation of $1.1 billion. The fresh capital will accelerate Statsig’s mission to unify product development tools as artificial intelligence changes how software is built and operated.

The company’s platform helps product teams test new features, measure their impact, and determine what to launch. This builds on traditional A/B testing practices, aiming to become a comprehensive product-building platform that supports everything from idea generation to launch and ongoing performance monitoring.

Funding and Growth Plans

The Series C round was led by Iconiq Growth, known for investing in companies like Datadog and Snowflake, with participation from Sequoia and Madrona. Statsig plans to expand its product offerings and grow its team from 140 to between 175 and 190 employees by early 2026. Open roles will include engineering, product management, data science, and sales and marketing positions.

Currently, Statsig reports $40 million in annual recurring revenue but has not shared details on profitability. The company ranks #9 on the GeekWire 200, highlighting the top private tech startups in the Pacific Northwest, and was recently a finalist for the Next Tech Titan award.

Addressing AI-Driven Product Complexity

AI is accelerating software development and increasing product complexity, making experimentation and continuous observation essential. AI-generated features can behave unpredictably, requiring teams to validate not only initial functionality but also sustained performance post-launch.

Statsig’s founder and CEO, Vijaye Raji, pointed out that product teams need tools that go beyond initial testing to ongoing monitoring to handle these new challenges effectively.

A Platform Approach Amid Industry Consolidation

The product experimentation space is seeing consolidation, exemplified by Datadog’s recent acquisition of Eppo, a competitor to Statsig. Datadog had previously approached Statsig about an acquisition before choosing Eppo.

Statsig positions itself differently by offering a broad platform rather than a narrowly focused solution. While competitors excel at solving specific problems, Statsig’s integrated approach intends to cover the entire product lifecycle. This strategy aligns with recent trends of bundling tools into larger platforms.

Company Culture and Regional Impact

Statsig emphasizes an in-person work culture with a five-day office policy, encouraging employees to live locally. This approach fosters close collaboration and speed but also means the company’s planned growth could have a noticeable impact on the Seattle region.

The company is preparing to move to a larger office near its current Bellevue location on the Interstate 90 corridor to accommodate its expanding team.

Leadership and Investor Support

Vijaye Raji, a Microsoft veteran who spent a decade at Facebook, including five years leading its Seattle office, draws inspiration from Facebook’s internal experimentation tools. The new funding and valuation are expected to help Statsig attract experienced engineers and product leaders who might hesitate to join an early-stage startup.

Murali Joshi, partner at Iconiq Growth, will join Statsig’s board. He has been involved with the company for nearly three years, providing hands-on support before the investment.

Platform Features and Future Products

Statsig’s platform includes experimentation, analytics, visualization, session replay, web analytics, and feature flagging, which allows teams to enable or disable features for different users. The company currently has three to four additional products in development, aiming to broaden its offering further.

For product development professionals looking to enhance their AI and experimentation skills, exploring relevant training can be valuable. Resources like Complete AI Training’s latest AI courses provide practical insights into AI-driven tools and product innovation.