From a small town in Spain, Magnific is quietly reshaping the creative economy

There is a certain script that most successful tech founders follow: elite university, major city, the right network, a seed round, a Series A, and then, if they are lucky, a cover story.

Joaquín Cuenca, co-founder and CEO of Magnific, an AI-powered creative platform that a16z recently ranked 11th in the world, did not follow that script. Cuenca, a former engineer at Google and a serial entrepreneur, grew up in Cox, a quiet town of just a few thousand people in southern Spain, built his first company there, and has spent the better part of 15 years doing things his own way.

Also Read: Transforming the creative economy and entertainment industry with TipTip

The results speak for themselves.

Born in isolation, built on first principles

Magnific’s origins trace back to Freepik, a stock image platform that Cuenca and his co-founders built from scratch in Málaga. The company was bootstrapped from day one, never raising a single penny from VCs. That decision, which would have seemed eccentric to most investors, turned out to be formative.

“We were not native speakers. We are different from the average entrepreneur in San Francisco,” Cuenca says. “And that shaped the company. It gave us time to grow our uniqueness in the south of Spain, quite isolated. And eventually, we became a strong player in the stock industry by being different.”

Being different, in Freepik’s case, meant offering a product that was completely free: unlimited downloads at a time when stock image subscriptions were expensive and restrictive. “You cannot get a subscription that gives you five images per month. That’s too little,” he says. “Our model that was completely free and with unlimited download options worked much better with that use case.”

Before long, the platform attracted more than one million visitors. It became one of the top 100 most visited websites in the world, particularly popular in India, Brazil, Indonesia, and other emerging markets where price sensitivity made the free model especially compelling.

Since there were no external investor to back its business, they had to be very careful with our financials. “We knew we were not going to get a second shot, so we needed to take care of ourselves,” Cuenca explains.

That discipline built a cost structure that remains significantly leaner than most of its competitors, an advantage that continues to matter as the company charges into generative AI.

The pivot that changed everything

When generative AI arrived, Freepik was well-positioned to reinvent itself, not because it had Silicon Valley connections, but because it had spent years cultivating a massive, loyal user base and had learned to think from first principles.

“When generative AI came, the fact that we had to create the company based on first principles, kind of isolated from all the advice and context in the US, it allowed us to rethink everything from scratch,” Cuenca says.

Also Read: Is generative AI the game-changer for productivity?

That rethinking led to the rebrand from Freepik to Magnific, a decision that represented far more than a name change. It was an acknowledgement that the company’s mission had fundamentally shifted.

“When we started Freepik, the number one goal was to make graphical assets accessible to people. Then when we started doing generative AI, we realised that our goal was to help people achieve better results, something that made them feel proud of what they made. And Freepik was not representing that,” he shares.

The rebranding exercise was not without risk; 14 years of brand equity does not simply transfer overnight. But Cuenca’s logic is clear: “You need to believe that there is a vertical alignment between your brand and your mission. If you feel that your brand is not completely aligned with your mission, that’s when you need to change.”

The macro economy bet

In plain English, Magnific builds AI-powered creative tools for professionals, studios, and brands making their best work across every medium. Its AI Suite brings together image generation, video creation, upscaling, and a library of over 250 million assets.

Magnific’s commercial thesis rests on what Cuenca calls the “macro economy”, a belief that generative AI will dramatically expand the creative economy rather than shrink it. It is a view that will unsettle many working designers and video editors, but he makes the case with a concrete example from within his own company.

“Before generative AI, we had a marketing department. We never created short films. We started creating films when it became so easy and so fast that it became affordable,” he says.

“The first thing we did when we started making our little films was hire an expert in audio. Then we got an external photographer. Then people who are very good at telling stories and then we hired folks who were very good at colour grading. Before you realise, you’re employing four or five people in a company that employed none before,” he continues.

Cuenca’s broader argument is that the film industry is shifting from a small number of very large, expensive projects to a much greater number of smaller ones being green-lit because production costs have fallen. “We believe that the creative economy is going to expand and not become smaller.”

When pressed on whether this optimism is convenient for a platform that benefits commercially from people believing it, he is direct: “If your sales pitch and your vision are not aligned, you’re not going to get very far. We have been very consistent in delivering towards the vision that we sell.”

His analogy is revealing: “I believe we will make films like we write books. One person with a vision, with a story. The technology to crystallise that vision is not a problem. Technology will not be the value.”

He is quick to add that Hollywood-scale productions will not disappear, but alongside them, a new spectrum of creator-driven work will flourish. “It’s going to go from one to many.”

Asia is already here

For a publication focused on Asia, particularly Southeast Asia, perhaps the most striking revelation is how central the region already is to Magnific’s user base. India is the company’s largest market by number of users. Brazil is second. The US is third. Indonesia, Thailand, and the broader region follow closely behind.

“Those are huge markets. We have been there very prominently for many, many years,” Cuenca says. The perception that AI tools are dominated by American or Chinese companies does not particularly concern him. “People don’t look at the label to see if a product comes from the US or not; they just use the product that they want to use.”

Also Read: Beyond the hype: What generative AI is actually changing in startups

For enterprise customers, being a European company is, if anything, an advantage. “For them, it’s a little bit like Switzerland. It’s not the US, it’s not China. They know that their data is going to remain private. It doesn’t go to Big Techs in the US, doesn’t go to China.”

Magnific is also actively expanding its presence in Asia, with events planned in Singapore around “Super AI” conference and growing enterprise engagement in Japan.

Starting prices on the Magnific platform sit around US$6 to US$7.99 per month depending on the plan, with free access to a large library of existing images for users who cannot yet justify a subscription. “There is no magic. Generating images costs money and we need to charge the user,” Cuenca acknowledges. “But when we can make it better for the user, we deliver the value.”

What comes next

The question of whether Magnific is the last company Cuenca will build is one he finds genuinely impossible to answer. “It’s like trying to guess who I will be in 10 years. I may get excited about something in biotech. I don’t know. I want to keep all my options open.”

What he is certain of is that his background (the small town, the bootstrapped beginnings, the years of building in isolation) continues to shape how he thinks. When asked about the threat of Adobe, Google, or other giants eventually moving into Magnific’s territory, he is measured but confident.

“The biggest players have a hard time when there is a dramatic shift,” he says. “It has happened many times. Canva succeeded because when browsers became so powerful, it became viable to build a graphic design product on top of them. Before the browser, it was impossible to take over a company like that.” His point is that size is a liability, not an asset, when the ground moves beneath you.

For now, the ground appears to be moving very much in Magnific’s direction.
—-

The post From a small town in Spain, Magnific is quietly reshaping the creative economy appeared first on e27.