Magic raises $27M in a Series A round led by Northzone

SaaS News -Decentralized-identity-authentication-platform-Magic-raises-$27M (source: SaaS Industry)
At a Glance

Magic, a decentralized identity authentication platform, raised $27 million in a Series A round. Magic’s aims to build the infrastructure needed to replace password-based Authentication with decentralized identity management. Magic employs a decentralized approach based on key-based encryption.


Magic, a decentralized identity authentication platform, has raised $27 million in a Series A funding round led by Northzone. Other participants include Tiger Global, Reddit co-founder Alexis Ohanian, and GitHub CTO Jason Warner

Sean Li, the company’s CEO and former Docker product lead; Arthur Jen, a former Yelp software engineer; and Jaemin Jin, a former software engineer at Apple, Amazon, and Uber, founded Fortmatic in 2018. Last May, the San Francisco-based startup relaunched as Magic after raising $4 million in early funding. Magic asserts that in the 14 months afterward, it has expanded its developer user base.

Magic’s goal is to build the infrastructure needed to eliminate password-based Authentication by utilizing decentralized identity management. Given that centralized identity management may mean disaster in the case of a compromise, the goal is ultimate to improve security.

When a few big companies house secrets — e.g., passwords — in a centralized way, one breached company puts billions of passwords on the internet at risk. Specifically, tech platforms like Google and Facebook act as centralized, single points of failure with ‘too big to fail’-level risks.

Sean Li, the company’s CEO and former Docker product lead

Magic takes a decentralized method, relying on key-based encryption over passwords with private keys safeguarded and controlled exclusively by the users.

When users sign in with Magic authentication, no secrets are passed around, eliminating the chance for lost or stolen passwords,” Li said. “With a few lines of code, developers can leverage elliptic curve cryptography and public-private key pairs to authenticate users into applications.

Sean Li, the company’s CEO and former Docker product lead

Magic has a metered payment model, with prices starting at about $0.0085 per login and a monthly active user maximum of $0.034. If 10,000 users each logged in once a month, the program’s total cost would be $85. If each of those users checks in twice a month, the total for the first four months would be $170, and so on. Magic doesn’t charge extra for more than four logins. 

Product feedback portal UserVoice, AI-powered copywriting tool Copy.AI, and information markets platform Polymarket are among Magic’s clients.

Authentication is complex. The beauty of Magic is that we abstract away all of the complexities. With Magic, enterprises get peace of mind with secure, extensible passwordless Authentication that’s built to scale — all with a few lines of code.

Sean Li, the company’s CEO and former Docker product lead
Total
0
Shares
Previous News Post
Next News Post
Most Popular