Tech Revolt

AI Startups Tech

AI Startup Hebbia secures $130M Series B funding

AI Startup Hebbia secures $130M Series B funding
  • PublishedOctober 7, 2024

Hebbia, an innovative startup using generative AI to search large documents and answer complex questions, has successfully raised $130 million in a Series B funding round. This investment, which values the company at approximately $700 million, was led by Andreessen Horowitz, along with Index Ventures, Google Ventures, and Peter Thiel.

The funding follows a growing trend where AI startups achieve valuations at 50 times their annual recurring revenue (ARR) or more. Hebbia, founded by George Sivulka during his PhD studies in electrical engineering at Stanford, boasted an ARR of $13 million and was already profitable at the time of pitching investors. The $700 million valuation places Hebbia’s worth at about 54 times its ARR, reflecting the significant interest and confidence in AI-driven enterprises. Similar startups, such as Glean and Harvey, have also seen valuations exceeding 60 times their ARR.

Founded in 2020, Hebbia initially developed an AI-powered search and summarisation tool but later pivoted to create an AI analyst named Matrix. This main product can ingest multiple files of unlimited length and respond to user queries in a tabular format similar to a spreadsheet. For instance, Matrix can process SEC filings and other documents to organise and compare information about a specific company and its competitors. Hebbia primarily serves asset managers, investment banks, and other financial institutions but is expanding its reach to law firms and pharmaceutical companies.

“Hebbia’s technology is already used by 30% of all asset managers for due diligence, asset pricing, and other research activities,” Sivulka said. The recent funding will be used to expand Hebbia’s team, enhance its presence in the financial services industry, and explore new verticals.

Hebbia’s impressive roster of clients includes investment bank Centerview Partners, Charlesbank, and legal firm Fenwick. Sivulka, often described as a tech genius, previously worked at NASA as a teenager and completed a bachelor’s degree in maths from Stanford in under three years. Unlike many other enterprise-focused founders, Sivulka does not have direct business experience or a business-focused co-founder, making his achievements even more remarkable.

 

Written By
Admin

Leave a Reply

Your email address will not be published. Required fields are marked *