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Statsig Founder Vijaye Raji on Building a $1.1B Product Development Platform

Vijaye shares his journey from Big Tech to startup, offering tactical insights on hiring, scaling, and building a product-led SaaS company.

Vijaye Raji, founder and CEO of Statsig, shares his journey from Microsoft and Facebook to building a platform for product development which was recently valued at $1.1B. From leading entertainment at Facebook to founding his own startup, Vijaye discusses the challenges and insights gained in scaling products and teams, and what the future holds for data-driven decision-making.

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Quotes from the episode

  • "The value proposition has not changed since the day we started... the more you know about your product, the better decisions you're going to be making."

  • "The moat is not the ideas, the product that we currently have, the moat is the ability to out execute anyone else."

  • “We built in vacuum for six months, convinced people wanted what we were making. But when it came time to adopt, no one was truly interested. That was a wake-up call.”

  • “Experimentation doesn’t replace product intuition. You need both, intuition to leap into the unknown, and experimentation to measure, refine, and validate whether that leap is actually working.”

  • “Most companies use a bunch of disconnected tools. Statsig brings them together into one seamless platform, giving teams a unified view of product performance and impact.”

What you’ll learn

  • Discover the personal motivations driving Vijay's transition from established big tech leader to startup founder, including equity ownership and the need for a new challenge.

  • Understand how Vijay applied his varied experiences in gaming, ads, marketplaces, and video to identify a market need for a developer platform focused on data-driven decision-making.

  • Learn the critical lessons Vijay learned about customer discovery and validation, including the pitfalls of building in a vacuum and the importance of the "Mom Test."

  • Recognize the blind spots founders face when transitioning from large companies, including the lack of go-to-market intuition and the necessity of spending time with sales teams.

  • Discover how Statsig empowers product builders by providing a unified platform for observing product usage, identifying issues, and informing future development.

Takeaways

  • Embrace data-driven development, recognizing that product development is becoming increasingly iterative and fast-paced, demanding tools that enable distributed decisions and code performance insights.

  • Start integrating tools like feature flags and product analytics from day one to gain immediate insights into user behavior and product performance, using session replays to understand user interactions.

  • Combine product intuition with experimentation; recognize experimentation is not a replacement for product intuition but a tool to validate hypotheses and avoid unforeseen side effects.

  • Prioritize the removal of friction, overhead, and unnecessary processes to foster an environment where creative individuals can thrive and deliver meaningful work.

  • Leverage internships as a strategic approach to building a talent pipeline, creating a steady stream of experienced and enthusiastic individuals committed to the company culture.

In this episode, we cover

  • (00:00) Introduction

  • (00:48) Vijay joins the show

  • (00:51) Leaving Facebook

  • (01:47) Motivation for starting a company

  • (02:05) Early career at Microsoft

  • (04:12) Leading entertainment at Facebook

  • (05:38) Interesting problems as head of entertainment

  • (07:41) Business side of content licensing

  • (08:30) Deciding to start Statsig

  • (10:27) Getting the first customers

  • (13:19) Blind spots when transitioning from big tech

  • (17:03) Value proposition of Statsig

  • (19:28) Explanation of feature flagging

  • (20:47) Trends in experimentation and product validation

  • (23:00) Ideal customer profile for Statsig

  • (24:38) Experimentation versus product sense

  • (28:20) Statsig's growth and scale

  • (29:44) Positioning Statsig as a developer tool

  • (31:08) Marketing efforts and ROI

  • (32:24) In-person company culture

  • (34:41) Attracting talent

  • (40:04) Fundraising aspect of Statsig

  • (41:35) Statsig and AI

  • (46:44) Favorite failure and lessons learned

  • (49:31) Current consumption and recommendations

  • (50:11) What Vijay wishes he knew before starting

  • (51:16) Perks of big companies

  • (51:35) What Vijay doesn't miss about big companies

  • (52:13) Conclusion

For full transcripts subscribe to paid version of the Substack.

Recommended books

  • The Mom Test

  • The Elegant Universe by Brian Greene

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Stay Curious,

Nataraj