NYC Insurtech Startup General Magic Raises $7.2M
General Magic, a New York-based insurtech startup, has raised $7.2 million in a new funding round. The company's platform uses AI to automate the insurance quoting process by parsing documents and extracting risk factors. The technology aims to reduce the time it takes to generate quotes from days to minutes, targeting legacy broker workflows.
- The seed round was led by Radical Ventures with participation from Andreessen Horowitz's (a16z) Speedrun accelerator program, bringing General Magic's total capital raised to $8.4 million. - Notable angel investors in the round include Brendan O'Driscoll, VP of Product at Figma, and Larry James Erwin from OpenAI, as well as backers like Cohere CEO Aidan Gomez. - Founders Anthony Azrak and Jai Mansukhani previously built and exited other AI products, and were motivated to enter the insurance sector after experiencing personal frustration with a complex and slow claims process. - The company's technical strategy is not to replace legacy systems, but to build a "reasoning layer" that sits on top of existing CRMs and broker management systems to extract data and automate workflows. - In an early deployment with a large personal lines insurer, the platform reduced the time-to-quote from approximately 30 minutes down to under three minutes by using an SMS-based AI agent to collect and validate underwriting information. - The AI agents are being trained on insurance-specific compliance and licensing frameworks, such as RIBO and OTL, to ensure communication aligns with regulatory requirements. - Originally founded as OpenSesame in 2024, the company rebranded to General Magic after participating in the a16z Speedrun accelerator program. - While the company is listed as New York-based, several sources identify it as being headquartered in Toronto, Canada.
