Total amount raised
$465.9 Millions
Latest funding date
1/1/2025
Location
Magic has raised $515 million from investors such as Nat Friedman, Daniel Gross, CapitalG, Elad Gil, Sequoia, Jane Street, and Eric Schmidt. The company is focused on building frontier code models to automate software engineering and research.
Keep reading to explore the intricacies of Magic's fundraising journey and the investors backing this innovative platform.
What Is Magic?
Magic, founded in March 2022 by Eric Steinberger and Sebastian De Ro, is an AI coding startup based in San Francisco, California. The company focuses on automating software engineering and research to achieve safe Artificial General Intelligence (AGI).
Magic enables developers to use natural language to describe the application or function they want to create, and its AI generates all the necessary code. This innovative approach allows software engineers to streamline the development process significantly.
With a team of 11-50 employees, Magic is dedicated to building frontier code models that include frontier-scale pre-training, domain-specific reinforcement learning, and ultra-long context. The company is actively hiring to expand its capabilities further.
How Much Funding Has Magic Raised?
- Seed Round
- Amount Raised: $5.1M
- Date: March 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of their AI-driven coding tools.
- Series A
- Amount Raised: $23M
- Date: February 2023
- Lead Investors: CapitalG
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Series B
- Amount Raised: $117M
- Date: February 2024
- Lead Investors: NFDG Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's rapid growth and development in AI code generation.
- Venture Round
- Amount Raised: $320M
- Date: August 2024
- Lead Investors: Eric Schmidt, Alphabet’s CapitalG, Atlassian, Elad Gil, Jane Street, Nat Friedman, Daniel Gross, Sequoia
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand AI-driven coding tools and build supercomputers on Google Cloud.
- Venture Round
- Amount Raised: SEK9M (approx. $1M)
- Date: January 2025
- Lead Investors: Flat Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further enhance their AI capabilities and market reach.
Total Amount Raised: $466.1M
Current Valuation: Not publicly disclosed
Key Investors
- Eric Schmidt
- Details: Eric Schmidt is the former CEO of Google and a prominent figure in the tech industry. He has been instrumental in the growth and development of numerous tech companies.
- Investment Focus Areas: Technology, AI, software.
- Notable Investments: Google, various AI startups.
- Alphabet’s CapitalG
- Details: CapitalG is the growth equity investment fund of Alphabet Inc., focusing on late-stage technology companies. It leverages Google's resources to help its portfolio companies grow.
- Investment Focus Areas: Growth-stage technology companies, software, internet.
- Notable Investments: Lyft, Stripe, Airbnb.
- Sequoia
- Details: Sequoia is a leading venture capital firm known for its early investments in some of the most successful tech companies. It has a long history of backing innovative startups.
- Investment Focus Areas: Technology, software, internet, mobile.
- Notable Investments: Apple, Google, LinkedIn, WhatsApp.
- Atlassian
- Details: Atlassian is an Australian enterprise software company that develops products for software developers and project managers. It is known for tools like Jira and Confluence.
- Investment Focus Areas: Software development, project management tools, collaboration tools.
- Notable Investments: Trello, Bitbucket.
- Elad Gil
- Details: Elad Gil is a well-known entrepreneur and investor with a background in technology and biotech. He has co-founded several successful startups and invested in numerous high-growth companies.
- Investment Focus Areas: Technology startups, AI, biotech.
- Notable Investments: Airbnb, Stripe, Ginkgo Bioworks.
What's Next for Magic?
Magic's future is brimming with opportunities, particularly in expanding its AI-driven coding tools and building AI supercomputers on Google Cloud. The partnership with Google Cloud to develop Magic-G4 and Magic-G5 supercomputers, leveraging NVIDIA GPUs, positions the company to scale its AI infrastructure significantly. This expansion aligns with industry trends favoring AI and automation in software development, promising substantial growth potential.
Given the recent $320 million funding round, Magic is well-poised for future fundraising opportunities. The backing from high-profile investors like Eric Schmidt and Sequoia suggests continued investor confidence. However, the company faces challenges such as intense competition from other AI startups and technical hurdles in refining its AI models. Overcoming these obstacles will be crucial for Magic to maintain its competitive edge and achieve its ambitious goals.
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