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Open supply product analytics supplier PostHog today introduced it has secured $15 million in a collection B spherical of funding from Y Combinator’s Continuity Fund and Google’s enterprise capital arm GV.
The information, which comes lower than a day after rival Amplitude hit a $4 billion valuation on a $336 million fundraise, shines additional mild on the fast digital transformation that corporations throughout the spectrum are present process because of the worldwide pandemic.
It has been a busy couple of years for PostHog, a remote-first firm with an official HQ in San Francisco. Founded again in 2019 as a predictive analytics instrument for gross sales groups, the startup pivoted to product analytics throughout its tenure at Y Combinator (YC) in early 2020, happening to shut a $3 million seed spherical in April led by YC’s Continuity Fund, which was adopted by a $9 million collection A spherical led by GV in December.
Today, PostHog claims customers from a slew of main corporations together with Staples, SpaceX, and Grafana.
In a nutshell, PostHog serves corporations with information and analytics on how individuals are utilizing their merchandise, giving insights on any notable traits and person retention, serving to to take away bottlenecks and scale back churn. The PostHog platform contains instruments resembling “feature flags,” enabling product groups to check experimental new features with a subset of customers by toggling them on or off, whereas classes replays allow them to watch a particular app-browsing session to grasp how clients are literally interacting with their product.
Alongside its funding information, PostHog additionally unveiled a brand new free self-hosted plan that lets corporations observe their product engagements on their very own infrastructure totally free.
It’s price noting that that is separate to PostHog’s absolutely open supply product that is accessible on GitHub beneath a permissive MIT license for anybody to deploy as they need. PostHog open supply is designed for product groups which can be monitoring no more than 10,000 customers a month, as a result of reality it makes use of a much less scalable database (PostgresSQL), which isn’t so good at performing analytical queries on bigger datasets.
PostHog Free, alternatively, makes use of ClickHouse. This requires a bit of more spadework to configure accurately, however it’s designed to scale to 1 million customers per thirty days. And whereas it is not absolutely MIT licensed but, PostHog product marketer Joe Martin informed VentureBeat that it plans to make this absolutely open supply and self-serve “in a few months.”
So because of this PostHog will basically have two open supply merchandise? According to Martin, the plan is to merge the technical enhancements it has made from PostHog Free into the prevailing open supply product, thus making PostHog open supply far more scalable.
“We ultimately want it to be suitable for everyone from individual hobbyists through to developers in enterprises, but there are some technical goals we need to reach first,” Martin defined.
Elsewhere, PostHog provides two plans designed for enterprise-grade corporations – the self-hosted PostHog Scale, which is managed by the client with help from PostHog; and the fully-hosted PostHog Cloud, the place PostHog takes care of all the things.
open supply ethos
The manner that PostHog has structured its enterprise is one that has grow to be more and more commonplace throughout the know-how spectrum, making a so-called “open core” enterprise mannequin on prime of an open supply product. By opening its platform to the developer group, this builds bridges with potential customers and creates a probably profitable inroad to more paid clients additional down the street.
“The way we think about this is guided by our mission, which is to increase the number of successful products in the world,” Martin mentioned. “If we can help more users out for free, we invariably get a higher volume of inbound paid enquiries. Often a developer that finds us useful on a side project one weekend may decide to take us into work on Monday.”
With one other $15 million within the financial institution, the corporate is now spooling as much as cater to a rising demand for its product, with plans to double its headcount by the tip of this 12 months after which once more by the tip of 2022.
“We actually weren’t planning to raise more funds this soon, but we were getting swamped with demand and were literally unable to keep up,” Martin mentioned.
In phrases of its personal product roadmap, the corporate mentioned it is planning to introduce higher help for “data ingestion and export to data warehouses,” whereas it additionally plans to construct on its just lately launched plugins library, which allows builders to tailor PostHog to swimsuit their very own use instances. “PostHog as a platform,” is the final thought right here.