General Magic raises $7.2 million

Toronto-bases General Magic announced a $7.2 million seed round led by Radical Ventures, with participation from a16z Speedrun, Figma VP of Product Brendan O’Driscoll, and Larry James Erwin from OpenAI.

Founded in 2024 as Open Sesame, the startup offers SMS-native AI agents that integrate directly into broker management systems, quoting platforms, and CRMs.

The startup claims that its work with a large personal lines insurer reduced quote time from ~30 minutes to under three. The AI agent collects required details over SMS, validates them against underwriting rules, and pushes the information directly into the system.

“Insurance breaks down when follow-through depends on calls, inboxes, and memory. We built agents that handle the work that frustrates customers and teams the most. When routine clarification is automated, teams move faster and customers feel taken care of.” – Jai Mansukhani, Co-Founder and President of General Magic.

“Most of the world’s financial and insurance data is locked inside rigid, legacy systems that were never designed for the AI era. General Magic isn’t trying to convince enterprises to throw away that infrastructure. Instead, they are giving them a way to finally talk to it. By building a reasoning layer that sits on top of existing systems of record, the General Magic team are unlocking a massive amount of trapped value. This is how the Fortune 500 becomes AI-native. Not by rebuilding from scratch, but by bridging the gap between old data and new intelligence.” – Sanjana Basu, partner at Radical Ventures.