Stigg, a startup that bills itself as the "first scalable monetization platform for the modern billing stack," has announced a $17.5 million Series A funding round. This investment brings the company's total funding to $23.9 million, following a $6.4 million seed round in 2021. The latest round was led by Red Dot Capital Partners, with participation from Unusual Ventures, Emerge Ventures, Redseed, and Cerca Partners.

Founded by Dor Sasson and Anton Zagrebelny, who previously worked together at New Relic, Stigg aims to help SaaS companies model pricing, create pricing pages, manage customers, and more. The platform's SDK is available in most popular languages and is designed to stay out of the developer's way. This approach enables SaaS companies to focus on their core business while Stigg handles the complexities of monetization.

The idea for Stigg was born out of the founders' experience at New Relic, where they struggled to implement usage-based pricing and consumption-based models. "It turned out to be tremendously difficult to drive home safely such a major pricing and packaging change in the scope and the volume, and complexity of a public company such as New Relic," Sasson explained. This challenge led them to create a platform that would simplify the process for SaaS companies.

Stigg's platform is particularly relevant in today's AI-driven landscape, where AI-based features are forcing SaaS companies to reevaluate their pricing plans. "AI is also disrupting everything we thought about how you sell and monetize software," Sasson said. "Today, with AI, we see more and more companies actually looking to sell differently, looking to introduce outcome-based pricing concepts, or work-based pricing concepts."

Traditionally, pricing models and entitlements are hard-coded into applications, making it difficult to make changes. Stigg's platform solves this problem by decoupling commercial concepts from hard-coded configurations, allowing engineering teams to focus on implementing new features while go-to-market teams can easily modify pricing plans.

The company's management console enables go-to-market teams to make changes to pricing plans without requiring developers to rewrite code. This flexibility is critical in today's fast-paced SaaS landscape, where companies need to adapt quickly to changing market conditions.

Stigg's platform has already attracted a range of high-profile users, including AI21labs, Cloudinary, PagerDuty, Miro, and Webflow. With this latest funding round, the company is well-positioned to continue its mission of revolutionizing SaaS monetization.

In conclusion, Stigg's innovative approach to SaaS monetization has the potential to transform the way companies approach pricing and customer management. As the SaaS landscape continues to evolve, Stigg is poised to play a key role in helping companies stay ahead of the curve.