A Toronto-based artificial intelligence startup has secured $9.9 million CAD in funding to revolutionize how Canadians interact with their insurance companies, potentially ending the frustrating experience of lengthy hold times when filing claims or asking coverage questions.
General Magic announced Tuesday it raised $7.2 million USD ($9.9 million CAD) to expand its AI-powered texting agents that handle insurance customer service interactions. The technology allows customers to file claims and get coverage information through text messages instead of waiting on hold for human representatives.
The funding round was led by Toronto venture firm Radical Ventures, with significant participation from Silicon Valley's prestigious a16z Speedrun program. Angel investors included executives from Figma and OpenAI.
"This is how the Fortune 500 becomes AI-native," said Sanjana Basu, partner at Radical Ventures. "Not by rebuilding from scratch, but by bridging the gap between old data and new intelligence."
Cutting Wait Times and Costs
General Magic's AI agents work across the entire insurance process, from initial quotes to claims coordination. The company claims its technology can reduce call volumes by 30 percent, saving insurance companies more than 250 hours per month in customer service operations.
For consumers comparing insurance costs, services like Calgary Prices can help track local insurance rates and coverage options, while General Magic's technology aims to make interacting with chosen providers more efficient.
The startup currently employs six people, including co-founders Jai Mansukhani and Anthony Azrak, who launched the company in 2024. After participating in the renowned a16z Speedrun accelerator program, the company rebranded from OpenSesame to General Magic earlier this month with a focused mandate on insurance technology.
Modernizing Legacy Systems
According to Radical Ventures, most financial and insurance data remains "locked inside rigid, legacy systems that were never designed for the AI era." General Magic's approach involves building a reasoning layer that operates on top of existing insurance company infrastructure rather than requiring complete system overhauls.
The technology could prove particularly valuable for Canadian consumers who frequently struggle with insurance processes, especially when dealing with auto insurance claims. Services like FullVIN.com help buyers research vehicle histories before purchase, while General Magic's platform could streamline the claims process if accidents occur.
Head of growth Aaron Anandji told BetaKit the funding will support team expansion, product improvements, and market development. The company plans to maintain its lean structure while hiring strategically where needed.
Connectivity Requirements
The success of AI-powered insurance services depends heavily on reliable internet connectivity for both companies and customers. Alberta residents using services from providers like WestNet Wireless would be well-positioned to take advantage of these text-based insurance interactions, which require stable data connections for real-time processing.
The a16z Speedrun program that helped launch General Magic offers participating startups $1.36 million CAD in equity funding, access to millions in software and AI tool credits, plus mentorship from one of the world's most prominent venture capital firms.
With this latest funding round, General Magic's total funding reaches $8.4 million USD, having previously secured investment from Cohere CEO Aidan Gomez among other notable backers.
This article is based on reporting by BetaKit. Read the original story at BetaKit.
