AI Startup Hebbia Secures $130M in Series B Funding at a $700M Valuation
Hebbia, a startup leveraging generative AI to search extensive documents and respond to complex queries, has successfully raised $130 million in a Series B funding round. This round, which values the company at approximately $700 million, was led by Andreessen Horowitz with significant participation from Index Ventures, Google Ventures, and Peter Thiel.

Hebbia, a startup leveraging generative AI to search extensive documents and respond to complex queries, has successfully raised $130 million in a Series B funding round. This round, which values the company at approximately $700 million, was led by Andreessen Horowitz with significant participation from Index Ventures, Google Ventures, and Peter Thiel.
This substantial funding round highlights the growing trend of AI startups achieving high valuations based on impressive annual recurring revenue (ARR) multiples. TechCrunch initially reported most of the details of this funding, noting that Hebbia continued to attract more investment, reaching an additional $30 million after the initial report. However, the company has yet to file an updated disclosure with the SEC, with the latest filing still indicating a raise of around $100 million in new equity.
Founded by George Sivulka while pursuing his PhD in electrical engineering at Stanford University, Hebbia had an ARR of $13 million and was profitable at the time of pitching to investors. According to sources familiar with the matter, Sivulka did not comment on the revenue or profitability during an interview with Hebbia, but he did confirm that the company's revenue grew 15-fold over the past 18 months.
The $700 million valuation equates to approximately 54 times Hebbia's ARR, a high multiple that reflects the current enthusiasm for AI startups. Comparable companies like Glean and Harvey have also seen valuations exceeding 60 times ARR, as reported by The Information.
Established in 2020, Hebbia initially developed an AI-powered search and summarization tool. The company later pivoted to become an AI analyst, with its main product, Matrix, capable of ingesting multiple files of unlimited length and responding to user queries in a tabular format akin to a spreadsheet. For example, Matrix can sift through SEC filings and other documents to organize and compare information about specific companies and their competitors, as explained by Sivulka.
Hebbia primarily markets its software to asset managers, investment banks, and other financial institutions. However, the startup is expanding its offerings to other sectors, including law firms and pharmaceutical companies. According to Sivulka, Hebbia's software is already utilized by 30% of all asset managers for due diligence, asset pricing, and other research activities.
The new funding will be utilized to expand Hebbia's team, continue sales efforts within the financial services sector, and branch out into new verticals. Notable customers include investment bank Centerview Partners, private equity firm Charlesbank, and legal firm Fenwick.
George Sivulka, often described as a wunderkind, has an impressive background. He worked at NASA as a teenager and completed his bachelor's degree in mathematics at Stanford in just 2.5 years. Despite not having direct business experience or a business-focused co-founder, Sivulka has successfully steered Hebbia to its current heights.
The successful Series B funding round signifies Hebbia's strong position in the AI analytics market, particularly within the financial sector. As the company continues to grow and diversify its customer base, it exemplifies the potential for AI-driven solutions to transform various industries.