AI tech firm Hebbia has successfully secured $130M in a funding round, raising the company’s valuation to $700M. Andreessen Horowitz led the financing, with significant contributions from Index Ventures, Google Ventures, and venture capitalist Peter Thiel.
The impressive funding reflects an annual recurring revenue multiplier of 50x, indicative of a trend among startups with early profitability. This demonstrates the continued confidence investors have in startups with solid revenue structures, signifying a shift in financing strategies. This trend aligns with the high growth rates and potential market that many young businesses contain, aiding their ability to secure notable funding multipliers.
Founded by George Sivulka, a Stanford PhD holder in electrical engineering, Hebbia boasted an Annual Recurring Revenue (ARR) of $13 million.
Hebbia’s impressive $130M funding achievement
Notably, the company was profitable before it began seeking investment. In only 18 months, Hebbia’s revenue has experienced a fifteenfold increase.
Since its inception as a simple AI-based note-taking and summarisation tool in 2020, Hebbia has developed into a full-fledged AI analyst. Its flagship software, Matrix, adeptly manages large volumes of data and responds to user inquiries in a spreadsheet-like format.
Approximately 30% of all asset managers use Hebbia’s software, primarily for due diligence and asset valuation. The company plans to diversify its clientele by including law firms and pharmaceutical industries, using the newfound funding to grow its team and extend its financial services.
A testament to Hebbia’s reach across various sectors, their key collaborations include financial consulting firm Centerview Partners, private equity investment firm Charlesbank, and law corporation Fenwick, providing each with essential services.
