at the most recently founding participating Index Ventures, Google Ventures, and Peter Thiel.
Hebbia is a technology startup that has created a priority in helping businesses with artificial intelligence. Hebbia has created complex software that has the ability to respond to different questions by analyzing large documents. With the implementation of Hebia’s solution, companies could have the power to deliver tasks more quickly and scan through crunchy documents within minutes, getting the needed information.
Think how useful such a solution can be when it comes to finding the right procedure in the company manual. Or, when it comes to the legal industry that can guide you to the needed answers. “Synthesizes volumes of information into clear, actionable insight” as the startup mentions on its website.
Even more so, Hebbia’s founding proves that AI companies are getting more and more notorious for 50X annual recurring revenue (ARR). All the more for companies who had millions in profitable revenue at the start of their journey.
The tech company was founded in 2020 by George Sivulka when he was working on his PhD at Standford. The company initially functioned as an AI-powered search and summarization tool. Later changing its focus and capabilities to the main software that they have today – Matrix. This software has the capabilities of analyzing documents of unlimited length and responding to given inquiries.
The responses the AI software gives are in a tabular format, similar to a well-known spreadsheet. The startup Sivulka has created had an ARR of $13 million. The company already being profitable when Sivulka presented its startup to investors.
In an interview with TechCrunch, the CEO and founder of the tech company said that the revenue had a 15X growth in only 18 months. It is also worth mentioning that for the $700 million valuation, the investors valued Hebbia at an ARR of about 54 times. Hebbia’s similar competitors, Glean and Harvey, also had a 60X ARR.
At the moment, Hebbia currently sells its products to asset managers, banks, and other financial institutions. However, as the company is in continuous growth, the possibility of expansion seems inevitable. Sivulka reported that they are looking forward to the pharmaceutical industry and law firms.
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