Incorporated in December 2014, and based in London, UK, Magic Pony develops state-of-the-art machine learning based approaches for visual processing on web, desktop and mobile, filing over 20 international patents and publishing at top conferences.
Magic Pony was a member of Entrepreneur First's third cohort #EF3, and subsequently raised two rounds of investment capital including from Octopus Ventures, Balderton, and angel investors. The first round, approximately £1.25 million implied a post-money valuation* of approximately £4.1 million. The second round, approximately £3 million, implied a post-money valuation of just over £21 million.*
On June 20, 2016, Twitter announced that it was acquiring Magic Pony, and that the team of 11 PhDs would "be joining Twitter Cortex, a team of engineers, data scientists, and machine learning researchers dedicated to building a product in which people can easily find new experiences to share and participate in."
Terms of the deal were not disclosed, although numerous numerous news outlets, including Techcrunch reported that the acquisition was valued at upto $150 million (£103 million) including retention bonuses. This implies a step-up of approximately 5X from the latest funding round.
The team plans to grow in London, where it will serve as the European homebase for Twitter's machine learning efforts.
* Valuation is based on issued shares outstanding as disclosed by the company in its corporate filings.