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- Magic
Magic Revenue, Valuation, Funding & Investors
Magic is valued at $1.5B as of February 2024, a 10.2x multiple on its last reported $147M revenue.
Last Magic valuation
$1.5B
Series B · Feb 2024
Last Magic funding round
$800K
Pre-seed · Jan 2025
Magic revenue
$147M
Series B · Feb 2024
Key investors in Magic
CapitalG
Sequoia Capital
Nat Friedman
Daniel Gross
Eric Schmidt
Atlassian Ventures
About Magic
Magic is a New York-based AI coding assistant that generates full-stack applications from natural language prompts for developers. Trained on public repositories, it produces React, Next.js, and Supabase codebases deployable to Vercel, handling frontend, backend, and database setup. Launched in 2023 with $35 million in Series A funding from Nat Friedman, the platform integrates with VS Code and Cursor. Used by engineers at Fortune 500 firms, it accelerates prototyping for SaaS products and MVPs.
Founded
2022
HQ
Website
Status
Privately held
Customer focus
B2B
Revenue model
Subscription
Revenue
$147M (Feb 2024)
Valuation
$1.5B (Feb 2024)
Magic Valuation
Magic is currently valued at $1.5B, based on its Series B in February 2024.
The $117M round was led by NFDG Ventures, with participation from CapitalG.
Magic's valuation has grown 3.0x from $500M at its seed round in March 2022 to $1.5B in February 2024, across 2 priced rounds.
Magic valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Feb 2024 | Series B | $1.5B | 10.2x |
| Mar 2022 | Seed | $500M | - |
Magic Revenue
Magic's latest recorded revenue is $147M, as of its Series B in February 2024. At a $1.5B valuation, that implies a 10.2x revenue multiple.
Magic revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Feb 2024 | $147M | $1.5B | 10.2x | Series B |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Magic Funding History
Magic has raised a total of $466M across 5 funding rounds.
Magic's first fundraising round was a $5M seed round in March 2022. The most recent completed round was a $800K pre-seed round in January 2025.
Magic funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jan 2025 | Pre-seed | Flat Capital (lead) | $800K | - | - |
| Aug 2024 | Undisclosed stage | Atlassian Ventures; Daniel Gross; Eric Schmidt; Jane Street; CapitalG; Sequoia Capital; Nat Friedman | $320M | - | Magic is a San Francisco-based generative AI coding startup founded in 2022, developing tools to help software engineers write, review, debug, and plan code changes using ultra-long context windows and Long-term Memory Network (LTM) technology. The company employs 100-200 people and competes in the AI/ML sector with peers like Codeium, Cognition, Poolside, Anysphere, and Augment. On August 29, 2024, Magic closed a $320 million Series C funding round, bringing its total funding to $465 million. Investors included Eric Schmidt, Alphabet’s CapitalG, Atlassian Ventures, Elad Gil, Jane Street, Nat Friedman, Daniel Gross, and Sequoia Capital. The funding is intended to accelerate product development, expand market reach, and strengthen Magic's position among top-funded AI coding startups. |
| Feb 2024 | Series B | NFDG Ventures (lead); CapitalG | $117M | $1.5B | Magic AI, a San Francisco-based startup founded in 2022 by Eric Steinberger and Sebastian De Ro, develops advanced AI systems to automate software development, positioning its tools as AI software engineers that assist with complex coding tasks like a coworker rather than a basic copilot. The company focuses on large context windows, having unveiled its Long-term Memory Network (LTM Net) architecture and LTM-1 model with a 5 million token context, far exceeding typical models like GPT-4 Turbo's 128k tokens. Magic operates in stealth mode but claims thousands of GPUs deployed for training next-generation models aimed at intelligent code generation and potentially broader artificial general intelligence aligned with human values. On February 16, 2024, Magic raised $117 million in a Series B funding round led by NFDG Ventures (Nat Friedman and Daniel Gross), with participation from CapitalG (Alphabet's growth fund) and Elad Gil, bringing total funding to over $145 million following a prior $23 million Series A. The funds are primarily directed toward talent recruitment, model training, and advancing novel neural architectures for extreme model scale. One source lists a $1.5 billion valuation for this round, though primary announcements do not disclose it. Magic differentiates in the competitive AI coding landscape by emphasizing massive context handling and AGI potential, contrasting with tools like copilot assistants. Subsequent developments include talks for a $200 million raise at $1.5 billion valuation (noted as triple the previous, implying prior valuation context) and a later $320 million round led by Eric Schmidt with Sequoia, Atlassian, and others, plus a Google Cloud partnership for AI supercomputers using NVIDIA H100 and Blackwell GPUs to scale to tens of thousands of GPUs. Magic reports no revenue and no product for sale as of mid-2024 reports. |
| Feb 2023 | Series A | CapitalG (lead) | $23M | - | Magic is a San Francisco-based AI startup founded in 2022, developing AI models to write software and assist developers in building applications. The company focuses on proprietary AI coding tools and has raised significant funding to accelerate product development, expand its team, scale operations globally, and build infrastructure like supercomputers on Google Cloud. CapitalG, Alphabet's growth fund, participated as a lead investor in Magic's Series A round of $45M alongside Amplify Partners, and also invested in a February 2024 round valued at $382.7-$500M post-money, where Magic raised ~$117M from backers including NFDG Ventures (Nat Friedman and Daniel Gross) and Elad Gil. Later, Magic raised a $320M Series C on August 29, 2024, led by Eric Schmidt with participation from CapitalG, Atlassian, Elad Gil, Jane Street, Sequoia, and others, reaching a $1.5B valuation amid talks to raise $200M+ at the same valuation to triple prior value. Total funding across rounds exceeds $465M from 22 investors. |
| Mar 2022 | Seed | - | $5M | $500M | Magic is a U.S.-based AI startup founded in 2022 that develops artificial-intelligence models to write software code and automate development tasks. The company, with around 20 employees at the time, secured a funding round in February 2022 valuing it at $500 million post-money. This round contributed to its total fundraising of $140 million by mid-2024 from investors including Nat Friedman and Daniel Gross's NFDG Ventures and Alphabet's CapitalG. The February 2022 round built on prior seed funding, positioning Magic in the burgeoning AI coding sector. Investors valued the startup at $500 million despite it earning no revenue and lacking a product for sale at that stage. This valuation reflected strong early interest in Magic's potential to advance AI-driven code generation and automation. Subsequent rounds, including a $52 million raise noted around that period, supported total funding exceeding $80 million initially, with the company later scaling to later-stage investments amid growing AI demand. |
Who has invested in Magic?
9 investors have backed Magic across its funding rounds, including CapitalG, Sequoia Capital, Nat Friedman, Daniel Gross, Eric Schmidt and Atlassian Ventures.
Lead investors include Flat Capital, NFDG Ventures and CapitalG.
Magic Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 3 | Lead | Feb 2023 | ||
| 1 | Participant | Aug 2024 | ||
| 1 | Participant | Aug 2024 | ||
| 1 | Lead | Feb 2024 | ||
| 1 | Participant | Aug 2024 | ||
| 1 | Participant | Aug 2024 | ||
| 1 | Participant | Aug 2024 | ||
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Start Free TrialMagic Competitors
Magic competitors include listed companies like C3.ai, Hanwang Technology Co and Horizon Quantum, and private ones like CodeRabbit, LangChain and Parallel.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | $15M | - | $1.5B | - | ||
| Publicly listed | $250M | ($484M) | $1.7B | 4.5x | ||
| Private | $12M | - | $1.3B | 104.2x | ||
| Private | - | - | $2B | - | ||
| Publicly listed | $282M | ($14M) | $605M | - | ||
| Publicly listed | $269K | ($5M) | $729M | - |
Magic Public Comps
Magic is still privately-owned, but its public comps include Shenzhen Ysstech Info, PCITECH, BigBear.ai, TRS Information Technology, Progress Software, Arcs Co, Wenge AI, C3.ai, Justsystems and Optasia.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $205M | $4M | 7.2x | - | 378.8x | - | |||
| $1.5B | $53M | 0.8x | 0.9x | 24.1x | - | |||
| $128M | ($295M) | 8.3x | 7.6x | (3.6x) | (27.8x) | |||
| $76M | ($20M) | 19.3x | 19.7x | (73.5x) | 478.8x | |||
| $978M | $302M | 3.0x | 2.9x | 9.6x | 7.3x | |||
| $4B | $185M | 0.2x | 0.2x | 4.8x | 4.9x | |||
| $60M | ($20M) | 27.6x | - | (82.7x) | - | |||
| $250M | ($484M) | 4.3x | 4.5x | (2.2x) | (6.2x) | |||
This data is available for Pro users. Sign up to see all Magic competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Magic
| When was Magic founded? | Magic was founded in 2022. |
| Where is Magic headquartered? | Magic is headquartered in San Francisco, CA, United States. |
| Is Magic publicly listed? | No, Magic is a private, VC-backed company. |
| What is Magic's valuation? | Magic was last valued at $1.5B in its Series B in February 2024. |
| How much funding has Magic raised? | Magic has raised $466M across 5 funding rounds. |
| What was Magic's last funding round? | Magic's last funding round was a $800K pre-seed round in January 2025, led by Flat Capital. |
| Who are Magic's investors? | Magic's investors include CapitalG, Atlassian Ventures, Daniel Gross, NFDG Ventures, Eric Schmidt, Jane Street, Sequoia Capital, Nat Friedman and Flat Capital. |
| What is Magic's revenue? | Magic's latest recorded revenue is $147M (February 2024). |
| What is Magic's revenue multiple? | Magic's latest valuation implies a 10.2x revenue multiple ($1.5B valuation on $147M of revenue). |
| Which companies are comparable to Magic? | Companies comparable to Magic include CodeRabbit, C3.ai, LangChain, Parallel, Hanwang Technology Co and Horizon Quantum. |
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