Magic Lands Secures $27M Series A for Passwordless Technology

Magic Secures $27 Million in Series A Funding for Passwordless Authentication

Magic, a San Francisco-based company specializing in “plug and play” passwordless authentication solutions, has successfully raised $27 million in a Series A funding round.

Northzone spearheaded the investment, with additional participation from Tiger Global, Volt Capital, Digital Currency Group, and CoinFund. This funding arrives just over a year following Magic’s official launch after a rebranding from its former identity, Formatic.

Addressing the Shortcomings of Traditional Passwords

Like numerous other companies in the cybersecurity space, Magic is dedicated to phasing out conventional password-based authentication systems. Their primary offering, the Magic SDK – released in April 2020 – streamlines the implementation of diverse passwordless authentication techniques, requiring minimal code and integrating seamlessly with contemporary frameworks and infrastructures.

The SDK not only simplifies the process for businesses and developers to adopt passwordless authentication but also offers a potential solution to the substantial financial repercussions often stemming from data security breaches.

“The inherent vulnerability of passwords is the core issue,” explains Sean Li, co-founder and CEO of Magic, in an interview with TechCrunch. “Current systems resemble a precarious Jenga tower; a successful hack can result in the theft of an entire database of encrypted passwords, which are then readily deciphered. This represents a significant and centralized point of failure.”

Expanding Authentication Capabilities

Recently, the company enhanced its SDK to incorporate support for WebAuthn. This addition allows for compatibility with hardware authentication keys, such as those offered by Yubico, alongside biometric login methods like Face ID and fingerprint scanning on mobile devices.

“While not yet widely adopted, we are committed to making this process exceptionally straightforward for developers,” states Li. “By doing so, we aim to encourage the adoption of innovative technologies, ultimately bolstering user security and privacy.”

Demonstrating Growth and Market Traction

Magic is experiencing substantial growth, evidenced by a 13% month-over-month increase in developer registrations. Furthermore, the number of secured identities is expanding at a rate of 6% each week. The company has also attracted prominent clients, including crypto news outlet Decrypt and fundraising platform Fairmint.

Wendy Xiao Schadeck, a partner at Northzone, commented: “We are thrilled to support Sean and the Magic team in their efforts to redefine internet authentication from the ground up, resolving a critical challenge for developers, users, and organizations alike.”

“It became apparent to us that their customers highly value their services, a testament to the team’s unwavering dedication to supporting every aspect of the developer experience across various communities. The potential for them to empower users and decentralize the web’s identity layer is particularly exciting.”

Future Plans and Expansion

The company intends to leverage the new funding to scale its platform and grow its team to address the increasing demand. Currently employing 30 remote full-time staff, Magic anticipates at least doubling its workforce across all key departments, including product development, engineering, design, marketing, finance, and operations.

Further development of the SDK is also planned, with Li expressing a desire to integrate with a wider range of technologies, such as low-code applications and workflow automation tools.

“Our ambitions extend far beyond this,” Li concludes. “We envision becoming the universal digital passport for the internet.”