AI Startup Hebbia Secures $130M Funding, Hits $700M Valuation on $13M Revenue

Last updated: July 10, 2024

george_sivulka_hebbiaIn a major leap for the AI sector, Hebbia, a trailblazer in generative AI for large-scale document search, has secured $130 million in a Series B round, pushing its valuation to $700 million.

The funding, led by Andreessen Horowitz with contributions from Index Ventures, Google Ventures, and Peter Thiel, highlights the soaring investor interest in AI startups, particularly those showcasing early profitability.

Hebbia’s impressive 50x annual recurring revenue (ARR) is becoming a benchmark in the industry. The startup, founded by George Sivulka during his PhD at Stanford, boasts $13 million in ARR and has maintained profitability, according to insider sources.

Though Sivulka declined to disclose revenue details in an interview, he confirmed a 15x growth in the past 18 months.

The $700 million valuation, representing 54 times Hebbia’s ARR, mirrors the high valuations seen during the pandemic boom, now common for buzzworthy AI firms.

Competitors like Glean and Harvey also enjoy similar high valuations, reflecting a broader trend.

Launched in 2020, Hebbia originally focused on an AI-powered search and summarization tool. Its flagship product, Matrix, now functions as an AI analyst, capable of processing extensive files and delivering insights in a spreadsheet-like format.

This innovation allows users to efficiently sift through SEC filings and other documents to glean comparative data on companies and competitors.

Hebbia’s primary clientele includes asset managers, investment banks, and financial institutions, with plans to expand into law firms and pharmaceutical companies.

Notably, 30% of asset managers utilize Hebbia for due diligence and asset pricing. The latest funding will fuel team expansion and market penetration across new verticals.

Hebbia’s client roster features prestigious names like Centerview Partners, Charlesbank, and Fenwick.

Sivulka, often described as a prodigy, distinguished himself early with a stint at NASA as a teenager and completing a math degree at Stanford in just 2.5 years.

His unconventional path, marked by a lack of traditional business experience, sets him apart in the entrepreneurial landscape.

Hebbia’s journey from an academic project to a profitable AI powerhouse underscores the transformative potential of AI in data-intensive industries.

With continued innovation and strategic growth, Hebbia is poised to redefine the AI landscape.

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Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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