Startup Spotlight #85: Magic

Make passwords disappear with a touch of Magic.

Feb 12, 2021

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I got the chance to speak with Sean Li, co-founder and CEO of Magic, about what he’s working on at his startup, and any advice he has for emerging entrepreneurs.

Magic is working on stopping the dangers of passwords. Instead of offloading the responsibility onto end-users to wrestle with various password security products, we provide developers the world’s simplest SDK to implement various passwordless login options, where end-users will never even need to set a password in the first place and solving the password problem at its roots.

Li is the co-founder & CEO of Magic - building the world’s simplest auth SDK to end the era of passwords. He previously led product design for Docker Desktop and founded Kitematic (acq. by Docker), which simplified the Docker experience for millions of developers.

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Startup Spotlight: Magic

Problem: 59% of users re-use their passwords across services, which is a major problem as a password-related data breach anywhere on the Internet is a security risk for every online user. 93% of all password-related data were compromised in the last 8 years alone, and this is only accelerating - the era of password-based security is over.

Market: The Identity and Access Management market is projected to reach $24 billion by 2025. Gartner also predicts that by 2022, 60% of large and global enterprises, and 90% of midsize enterprises, will implement passwordless authentication in more than 50% of use cases.

Solution: Magic provides developers the simplest SDK to implement passwordless authentication methods, such as email magic links, social login, and WebAuthn (device/biometrics), in their application. This prevents the end-users from getting their identity compromised by not even providing the option to log in with passwords in the first place!

Team: Magic has assembled a world-class team that built products used by millions, spanning many industries from developer tools, infrastructure, and security to deliver the best passwordless solution to developers and users worldwide. Some companies the Magic team are from: Docker, Stripe, Amazon, Box, Auth0, Apple, Yelp, eBay, Mozilla, and Uber.

Recent Success:

Li: One thing that Magic is successful at is crafting the simplest developer experience. With a couple of lines of code and zero-configuration, developers will be able to implement passwordless login in their applications using the programming language, framework, or platform of their choice! We have simplified and streamlined the work needed to support a variety of login methods, like email magic links, social login, and WebAuthn. Magic also abstracts away security and infrastructure upkeep of an authentication solution, so customers won’t need to build an in-house security and ops team for authentication needs, while also leveraging Magic’s enhanced security features such as preventing malicious login attempts based on usage patterns.

Recent Struggle:

Li: Authentication is one of the most critical pieces of businesses because it directly impacts their livelihood - their end-users. As a new identity startup on the block, conveying trust and ensuring that Magic is secure and reliable to potential customers and developers is not an easy feat. A tremendous amount of work is poured into our security architecture, up-time, performant and reliable email delivery, iterating closely with our customers, and crafting a delightful product experience. We’ve also worked hard to make sure that Magic is straightforward to integrate for customers migrating to our solution from an in-house solution or another 3rd-party vendor while focusing on longevity and minimizing Magic’s platform vendor lock-in risks, which will help significantly improve trust.

Founder Advice:

Li: Lean into your gut instincts and be authentic. There are many “tactics” or the “best way to do something” in the world of startups, making following your instincts feel very counterintuitive. But what truly matters is often contextual, what works for others doesn’t necessarily work for you. The founder CEO has the most unique and encompassing context of the startup. To survive with limited time, resources, and a million things to consider, our instincts are the best guide for quick decisions. A healthy mind is critical to not disrupting the flow of decision-making. To have a healthy mind, we need to be honest with our own emotions, be able to zoom in and out of situations, be empathetic, and embrace the reflexive nature of our universe - a force always has a reaction force, and a beginning always has an end. Gratitude is also essential, especially during tough times, be grateful to the people you interact with, and you’ll wake up excited and energized every morning.

Three Cool Founders You Should Know About:

Li: Here are three founders you should check out next!

Devrim Yasar, Founder of Superpeer: Superpeer is a monetization tool for the best minds providing a platform for paid 1:1 video calls and livestreams.
Thibauld Favre, Founder of Fairmint: Fairmint exists to give founders the opportunity to turn their equity into their most powerful community engagement tool.
John Paller, Founder of Opolis: Opolis is a Digital Employment Cooperative for the Independent Worker.

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