Magic Secures $10M Funding to Revolutionize Hospitality with AI Technology

In a significant move towards transforming the hospitality sector, Magic has announced it has secured $10 million in seed funding, led by the venture capital firm Lerer Hippeau, with contributions from Bling Capital, Floodgate, and notable partners like Major Food Group and VCR Group. This funding marks the company's emergence from stealth mode following its successful development of Loyalist, an AI-driven platform designed to optimize personalized hospitality experiences across various venues.

After years spent facilitating operations in some of the world's top restaurants, including Major Food Group and Le Bernardin, Magic's technology aims to address a pivotal gap in the service industry. While AI has significantly enhanced productivity for many professions, its impact on the service sector has been limited, a discrepancy that Magic is determined to remedy.

"Every aspect of our digital lives has been revolutionized by AI, from shopping to content consumption, yet the physical experience in restaurants and hotels remains largely generic," stated Maggie Tang, the Founder and CEO of Magic. She emphasizes that the next evolution of AI is poised to extend beyond chatbots and into the real world, significantly enhancing personal interactions in hospitality settings.

The Loyalist platform integrates seamlessly with a restaurant's existing technology, unifying reservation systems, point-of-sale systems, event platforms, and even social media into a cohesive CRM. This framework not only simplifies operations but also enables restaurants to deliver tailored experiences to guests. For instance, it can track a patron's favorite table and dietary preferences, allowing staff to create memorable, personalized dining experiences.

Mario Carbone, chef and co-founder of Major Food Group, remarked, "One of the unique aspects of our restaurants is the deeply personal relationships we foster with our patrons. Loyalist enables us to scale that intimacy, ensuring personalized service for everyone who dines with us." This sentiment is echoed by David Rodolitz, co-owner and CEO of VCR Group, who pointed out that Loyalist is designed to genuinely understand the human dynamics of the hospitality industry, facilitating meaningful connections between staff and guests.

Currently, Loyalist is responsible for managing millions of guest interactions across a wide array of establishments, driving over $2 billion in guest spending annually. The company's customer base has expanded considerably, with revenues multiplying over tenfold in the past year alone. With the recent funding, Magic plans to grow its team and develop additional AI-powered tools tailored for various sectors within hospitality, including retail, wellness, and real estate.

Ben Lerer, Managing Partner at Lerer Hippeau, expressed optimism about the prospects of Magic, stating, "Creating enchanting hospitality experiences hinges on excellent service and atmosphere, yet industry veterans know this is no easy feat. Maggie's extensive background in restaurant operations equips her with the unique insights necessary to unravel friction in service delivery, enabling the human aspect to flourish. The technology is now prepared to deliver on that promise in one of the world's most traditional industries."

As Maggie Tang put it, "In an increasingly digital world, there is a growing yearning for genuine human connection. Magic is committed to empowering businesses to craft experiences that make their clients feel valued and included."

About Magic: Magic is an AI company focused on integrating personalization and intelligence into real-world experiences. Its premier product, Loyalist, aids restaurant operators in understanding and delighting each guest through insightful data. Based in New York City, Magic counts Lerer Hippeau, Bling Capital, and Floodgate among its investors. Learn more about Magic at magic.company and loyalist.com.

About Lerer Hippeau: Lerer Hippeau is an early-stage venture capital firm based in New York City that has been investing in innovative entrepreneurs since 2010. Their portfolio includes over 400 notable businesses in both the consumer and enterprise sectors. For more information, visit lererhippeau.com.

About Bling Capital: Founded in 2018 by Ben Ling, Bling Capital is an early-stage venture fund that has supported over 100 companies, collectively raising more than $3 billion. Aimed at empowering their portfolio companies with access to a vast network of top executives, the fund has made a significant impact within the startup ecosystem. More information is available at blingcapital.com.