Hebbia, a startup utilizing generative AI to analyze extensive documents and address complex inquiries, recently secured a $130 million Series B funding round, valuing the company at approximately $700 million. The funding was led by Andreessen Horowitz, with participation from Index Ventures, Google Ventures, and Peter Thiel.
This substantial funding highlights a trend where AI startups, particularly those generating significant revenue early on, are reaching valuations of 50 times their annual recurring revenue (ARR).
While some fund details were already disclosed by TechCrunch, Hebbia continued to secure an additional $30 million post the initial report. However, an updated disclosure to the SEC is pending as the latest information still references a target of raising approximately $100 million in new equity.
Hebbia was founded by George Sivulka during his PhD studies in electrical engineering at Stanford. The startup boasted an ARR of $13 million and profitability during investor pitches.
In a recent interview with TechCrunch, Sivulka affirmed remarkable revenue growth of 15x over the last 18 months, while remaining discrete about specific revenue figures and profitability.
With a valuation of $700 million, Hebbia was valued at around 54 times its ARR, reflecting a trend in the AI startup ecosystem. The company’s flagship product, Matrix, offers AI-powered analysis for various industries including finance, law, and pharmaceuticals.
Hebbia’s software, primarily used by asset managers and investment banks, is expanding its reach to other sectors such as law firms and pharmaceutical companies, as the company aims for broader market penetration.
The company’s client portfolio includes significant names like Centerview Partners, Charlesbank, and Fenwick.
Sivulka’s background at NASA and accelerated education at Stanford underscore his reputation as a prodigious talent in the field. Despite lacking direct business experience or a business-focused co-founder, Sivulka’s vision has propelled Hebbia’s success in the competitive enterprise landscape.
