I am working for an analytics company and it really depends on your needs as there are dozens and dozens of tools out there. We are specializing in indivualisation, integration of other data and the ability to filter and segment on any recorded data, but that comes at quite a hefty price tag and it requires some time and knowledge to really be of use to a company. So I hesitate to recommend ourselves to startups, which are not really heavily into analytics.
Mixpanel offers some good stuff for web applications. If you want, shoot me an email and let me know, what you are doing and what you need and I can perhaps make a recommendation.
A tangential question: Do you have any similar recommendation for an Analytics tool that knocks socks off vs the free product from the big ad company?
I know there are several competitors out there, but I haven't heard the pitch yet that would lead me to switch.