Stigg Raises $6.4 Million Seed Round to Free Developers from Building and Maintaining SaaS Pricing
Founded by New Relic Veterans, Stigg’s management platform for SaaS pricing and packaging backed by Unusual Ventures, Emerge, along with strategic angel investors
Stigg, a platform that enables software companies to be nimble in their pricing and packaging while freeing up development resources, announced $6.4 million seed funding. Until today, developers needed to build and maintain pricing plans. Stigg gives developers the tools to create smart, flexible infrastructure so they never need to deal with it again. With Stigg’s no-code offering, made available today, product and growth teams can ship better pricing plans to their customers, as well as test and tweak pricing and packaging strategies, without occupying scarce developer resources.
Dor Sasson, CEO, and Anton Zagrebelny, CTO, two former New Relics, founded Stigg after experiencing first-hand how complex and time-intensive pricing strategy changes become for the entire business.
Read More: MobiDev Listed 7 IoT Trends For Business In 2022
“What we found most amazing with pricing is the little things can make a huge impact on growth – but people almost never run pricing changes”
“Cost-of-Goods-Sold (COGS) in SaaS is skyrocketing and companies are looking to cut costs and streamline more deals by introducing a self-service buying experience. We’ve seen how the world is changing from traditional top-down sales to product-led growth (PLG) and usage-based pricing (UBP), and what a huge, demanding, effort is required to re-architect all the infrastructure essential to enable that transformation,” said Sasson. “Companies delivering SaaS need greater flexibility and speed in their go-to-market.”
Stigg is backed by Unusual Ventures, Emerge Ventures, and strategic angel investors who are SaaS executives such as: Guy Fighel, group vice president product, New Relic; Srinivas Soumayajula, head of monetization, Calendly; Sam Lee, director of pricing and monetization, Snowflake; Nir Nahum, chief technology officer, WalkMe; Tal Lev-Ami, co-founder and chief technology officer, Cloudinary; Scott Williamson, former GitLab chief product officer; and Ofer Smadari, co-founder and CEO, Torq.
“In my years as an analytics executive, I noticed that more and more of our b2b software customers wanted more pricing flexibility for their end customers and ways to experiment, especially with their self-serve revenue,” said Sandhya Hegde, general partner, Unusual Ventures. “These projects would always get deprioritized because the engineering team needed to focus on the core platform instead. That was always Stigg’s vision — to help developers set up pricing infrastructure in a way that the whole company could test and deploy packages that were the best for their business as well as for customers.”
Read More: SalesTechStar Interview With Michael Ramsey, VP Of Customer Workflow Products At ServiceNow
A report on SaaS Pricing Strategy by Profitwell noted that pricing is the most effective lever to maximize profits – 4x more efficient than acquisition in improving growth and 2x more efficient than retention optimizations.
“What we found most amazing with pricing is the little things can make a huge impact on growth – but people almost never run pricing changes,” said Sasson. “We asked more than 150 SaaS companies “why?,” and we got the answer – any kind of tweak messes everything up from the product, to the website, to billing, the CRM (customer relationship management) system, and sales commission plans. As a result, changes aren’t made or there is extreme resistance to make changes. We have decided to make it our life mission to make software monetization easy and lightning fast.”
With one integration, Stigg users get fine-tuned control over the company’s entire packaging and pricing infrastructure. From getting up and running with self service to updating an existing pricing model, Stigg accelerates any go-to-market strategy, making software monetization an accessible growth lever for the entire organization.
