AI Startup Hebbia Secures $130M In Series B Funding Led By A16z, Valued at $700M

Hebbia, an AI startup specializing in generative AI for document search and complex query responses, has raised $130 million in a Series B funding round. The round, led by Andreessen Horowitz with participation from Index Ventures, Google Ventures, and Peter Thiel, values the company at approximately $700 million. This funding highlights the trend of high valuations in the AI sector, particularly for startups with significant early revenue.

Founded by George Sivulka, who was working on his PhD in electrical engineering at Stanford, Hebbia achieved an annual recurring revenue (ARR) of $13 million and was profitable at the time of its funding. The $700 million valuation implies a valuation of about 54 times ARR, reflecting investor confidence in the company's growth potential and profitability.

George Sivulka, Hebbia’s sole founder and CEO, has an impressive background. He worked at NASA as a teenager and completed a bachelor’s degree in math from Stanford in just 2.5 years. Sivulka’s technical expertise and innovative vision have driven Hebbia’s rapid growth and success, despite lacking direct business experience or a business-focused co-founder.

Hebbia is building that layer to make AI work seamlessly like a human. Unlike traditional AI which functions as transactional chatbots, Hebbia’s AI operates with the complexity and transparency akin to a human analyst. This innovative approach is designed for knowledge workers, enabling them to instruct AI agents to complete tasks with unparalleled flexibility and openness.

Hebbia’s AI is already used by leading asset managers, law firms, banks, and Fortune 100 companies, redefining how they operate. During the SVB crisis, asset managers used Hebbia to map exposure to regional banks across millions of documents instantly. Activist investors found inconsistencies across numerous 8Ks during proxy attacks, while corporate lawyers gained a negotiation edge by quantifiably encapsulating market terms in real-time. AI agents have priced private assets more effectively, conducted new kinds of diligence, and screened more opportunities than ever before.

Hebbia's $130 million Series B funding marks a significant milestone in the company’s mission to redefine AI's role in the workplace. By creating AI that works with the complexity and transparency of a human, Hebbia is set to fulfill AI’s long-awaited promise of revolutionizing work and driving unprecedented global progress.