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Image Credits:George Sivulka / Hebbia
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Hebbia , a startup thatuses productive AI to search large documentsand respond to large questions , has raised a $ 130 million Series B at a roughly $ 700 million valuation conduct by Andreessen Horowitz , with engagement from Index Ventures , Google Ventures and Peter Thiel .
And its support demonstrates that 50x annual recurring revenue ( ARR ) is becoming the average for AI startup , specially ace that have booked millions of profitable tax income early in their journey .
The formal support proclamation confirmed most of the detail previously reported by TechCrunch , although Hebbia stay on to raise more funds , another $ 30 million , after our report . But Hebbia has not yet file an update disclosure on this financial support round to the SEC , and the latest one at this time still say it was raising around $ 100 million of new equity .
Hebbia , which was founded by George Sivulka while he was act on his Ph.D. in electric engineering at Stanford , had ARR of $ 13 million and the company was profitable when it was pitching investors on the deal , harmonize to a somebody with cognition of the subject .
In an consultation with TechCrunch , Sivulka , who is the inauguration ’s sole founder and CEO , decline to gloss on Hebbia ’s tax revenue or gainfulness . But he said that the startup ’s revenue develop by 15x over the last 18 months .
The $ 700 million rating implies that investors valued Hebbia at about 54 times ARR . Such heady valuations were common at the height of the pandemic - infused boom and are now routinely arrogate to buzzy AI startup . Hebbia ’s closest analogue , Glean and Harvey , had evaluation of slenderly over 60x ARR , according to theInformation ’s reporting .
establish in 2020 , Hebbiainitially work on on an AI - powered searchand summarization tool . The company later on revamped itself as an AI psychoanalyst . Matrix , Hebbia ’s main product , can take multiple files of unlimited length , and answer to user ’ inquiries in a tabular format , similar to a spreadsheet . For example , the Matrix can sift through SEC filings and other text file to organize and compare information about a specific companionship and its competitors , Sivulka said .
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Hebbia presently trade its computer software primarily to asset managers , investment bank and other financial institutions . But the startup is enlarge its offer to other region , include law firms and pharmaceutical companionship , Sivulka order .
The company ’s product is already being used by 30 % of all asset managing director , who apply Hebbia for due diligence , asset pricing and other research , concord to Sivulka . The bracing funding is being used to grow its squad , cover to trade to the financial services industriousness and elaborate to other verticals .
Hebbia ’s list of customer includes investiture bank building Centerview Partners , Charlesbank and effectual firm Fenwick .
Sivulka has been key out as a wunderkind . He worked at NASA as a teenager and graduated from Stanford with a bachelor-at-arms ’s arcdegree in mathematics in 2.5 years .
He also stands out from other enterprise - focus beginner for not having direct business experience nor a business - focused co - founder .
