General Magic, a Toronto-based agentic AI startup focused on automating insurance customer interactions, has secured $7.2 million in funding to expand its AI agent platform and accelerate market rollout.
The round was led by Radical Ventures, with significant participation from a16z Speedrun and angel investors including Figma VP of Product Brendan O’Driscoll and OpenAI’s Larry James Erwin. The new funding brings the company’s total capital raised to $8.4 million and will be used to scale the team, enhance product capabilities, and strengthen go-to-market execution.
What The Company Does
Founded in 2024 by Jai Mansukhani and Anthony Azrak, General Magic develops AI agents that communicate with insurance customers via text message to manage inquiries, claims coordination, and policy-related interactions. The platform is designed to reduce reliance on traditional call centers by enabling automated, conversational engagement across the insurance lifecycle.
Its agentic system supports multiple touchpoints, including pre-quote eligibility checks, post-quote engagement, and claims handling, allowing insurers to streamline customer communication without requiring policyholders to wait on support lines. By integrating directly with existing enterprise systems, the platform functions as a reasoning layer that interacts with legacy data infrastructure rather than replacing it.
The company reports that its AI agents can dynamically handle customer requests, helping insurers lower call volumes and reduce operational workloads while maintaining continuous engagement through asynchronous messaging channels.
Advertisement
Market Context / Industry Background
Insurance and financial services firms continue to operate on legacy IT systems that were not originally designed for AI-native workflows. As a result, customer service processes often rely heavily on manual support channels, long response times, and fragmented data access, creating inefficiencies in claims processing and customer communication.
Agentic AI platforms are increasingly being adopted as a middleware layer that connects modern AI capabilities with legacy enterprise systems. Rather than requiring full system overhauls, these solutions allow large organisations to incrementally automate workflows while preserving existing infrastructure.
Within the insurance sector, automation of customer communication is emerging as a key efficiency lever, particularly as insurers seek to reduce call center costs and improve response times without compromising regulatory compliance or service quality.
Founder / Investor Commentary
Radical Ventures partner Sanjana Basu emphasized that a large portion of financial and insurance data remains embedded in rigid legacy systems, limiting the adoption of modern AI capabilities. She noted that General Magic’s reasoning layer is designed to unlock value from this data by bridging older infrastructure with AI-driven intelligence rather than requiring full system reconstruction.
Basu stated that this approach represents a practical pathway for large enterprises to become AI-native, highlighting the importance of integrating AI directly into existing operational workflows.
The company’s leadership has also positioned the platform as a solution to the persistent friction in customer support processes, particularly long wait times and inefficient claim coordination that remain common across the insurance industry.
Growth Plans / Use Of Funds
The newly raised capital will be allocated toward product development, team expansion, and commercial scaling as the company brings its platform to market. While General Magic plans to grow its workforce selectively, it intends to maintain a lean operating structure while prioritizing key hires in engineering and go-to-market roles.
The startup, which currently operates with a small team, aims to further refine its AI agents and expand deployment among insurance providers seeking to automate customer engagement and reduce operational overhead. Additional focus will be placed on strengthening integrations with enterprise systems and improving agent reasoning capabilities across complex insurance workflows.
General Magic previously participated in the a16z Speedrun accelerator, which provides funding, AI tooling credits, and mentorship to early-stage startups. The company recently rebranded from OpenSesame to General Magic, shifting its primary focus toward insurance-specific AI automation use cases.
About General Magic
General Magic is a Toronto-based AI startup developing agentic communication platforms for the insurance industry. Founded in 2024. The company builds AI texting agents that automate customer interactions across quoting, policy management, and claims workflows, with the goal of reducing call center dependency and enabling AI-native customer service within legacy enterprise systems.
