Summary
Team Overview
, originally Fortmatic, was founded by Sean Li, Arthur Jen, and Jaemin Jin in 2018 and is currently based in San Francisco. The founding team all has extensive experience with developing and growing software companies and all received Software Engineering degrees from the University of Waterloo. Magic currently employs 40~ employees.
Previous Work Experience:
Product Lead at Docker (2014-2016)
Co-Founder/Chief Product Officer at Kitematic, acquired by Docker (2013-2014)
Education:
University of Waterloo, Software Engineering
Previous Work Experience:
Software Engineer at Yelp (2015-2018)
Cloud Engineer at Inkling (2013-2014)
Cloud Computing Software Developer at Ontario Institute for Cancer Research (2013)
Cloud Operation Analyst at Awareness (2012)
Education:
University of Waterloo, Software Engineering
Previous Work Experience:
Software Engineer at Uber (2015-2018)
Software Engineer at Amazon.com (2015)
Software Engineer at Apple (2014, 2013)
Education:
University of Waterloo, Software Engineering
Product
In traditional applications, authentication is done by verifying a user through a username and password. In passwordless authentication, this verification is done without the use of passwords. Identity can be verified through an object that uniquely identifies the user.
How it works?
Traditional password process
Magic’s passwordless process
Why is it different?
Magic has adapted W3C's (DID) protocol to leverage the blockchain and to generate verifiable proofs of identity and authorization instead of SSH key-pairs. Magic has developed this architecture, Delegated Key Management (pat. pend. USPTO 62/904689), which allows it to remain non-custodial by leveraging Hardware Security Modules (HSMs) provided by Amazon Web Services' Key Management Service (AWS KMS).
For Magic, this means they are able to provide authentication through:
The future product roadmap focus is on delivering Magic Connect. This will be a one-stop shop for delivering a seamless Web 3.0 experience with features like a unified wallet UX, secure transaction and wallet management, on-ramp and off-ramp payments, and multi-chain.
Magic Whitepaper.pdf765.3 kB
Market
Competitors
Competitive Landscape 2
Name
Focus
Funding News
Public Pricing
There are no rows in this table
Pricing
In terms of pricing, all offer utility-based pricing models.
In regards to pricing, Magic is significantly cheaper than Stytch and Auth0 while publicly Web3Auth is cheaper once you go beyond 1,000 MAUs.
Traction/Financials
Currently, Magic lists 23 public customers highlighted by Alchemy, Decrypt, Immutable X, Nifty’s, Polygon, and Zerion.
Reported customer traction:
See Balance Sheet for financial details.
Highlighted Metrics 2
Metric
2019
2020
2021
2022
2023E
1
Annual Recurring Revenue
2
Number of Customers
3
Customer Acquisition Cost
4
Customer Churn Rate
5
Burn Rate
There are no rows in this table
Historical Funding
$27M Series A led by with participation from , , CoinFund, , , , , , , , , , , , , , , , ,
$4M Seed led by with participation from , , , , , , , , , and
Current Round
Magic is looking to raise $XXM for its Series B round at a $XB valuation.
Terms include:
Milestones/Runway
Magic’s current burn rate is $XXXK/month. Information can be found in the Balance Sheet.
The fundraise will be used on:
Investment Recommendation
My recommendation is to invest in Magic. Magic is leading the pack on creating the most cohesive solution for a secure and seamless Web 3.0 experience. Comparatively, it has the most comprehensive feature set in the market with the best pricing and can become the defacto identity solution for the blockchain revolution. With some of its future products, Magic could also look to crossover into the fintech space and provide identity solutions a la Plaid. This would grow Magic’s potential from being a unicorn to a decacorn.
Pros:
Risks:
Appendix
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