Paragon was established in 2019 by veterans from Israel Defense Forces’ intelligence Unit 8200, with former Israeli Prime Minister Ehud Barak reportedly owning a significant share of the company. The firm has attracted investment from Battery Ventures, a prominent venture capital firm headquartered in Boston. Two of its founders previously worked for Blumberg Capital, another notable US venture capital firm.
In June, Israeli media reported that a US private equity fund specializing in security companies was negotiating to acquire control of Paragon, with the company’s valuation estimated at $1 billion. The Atlantic Council has noted that Paragon has made concentrated efforts to penetrate the US market to establish its uniquely US-approved ethical positioning.
In 2019, as Paragon was developing its product, Graphite, it engaged WestExec Advisors, a consulting firm in Washington, DC, co-founded by former Obama administration officials, including current US Secretary of State Antony Blinken, to strategize its approach to US and European markets. Avril Haines, who previously worked at WestExec, now serves as the US Director of National Intelligence.
To maintain favorable relations with the US government, Paragon hired the lobbying firm Holland & Knight in February 2023, known for its effectiveness in avoiding sanctions. Lobbying disclosures indicate a minimum expenditure of $280,000 for the years 2023 and 2024 for this campaign.
The fact that Paragon and its executives have not been sanctioned by the Biden administration suggests that their lobbying efforts have been effective. Additionally, an executive order from President Biden allows for the potential lawful deployment of tools like Graphite, as reviewed by agency heads.
Paragon continues to expand, currently advertising several positions in Israel. In the US, the company has bolstered its subsidiary by hiring former intelligence officers from the CIA and FBI, aiming to secure new business opportunities. Reports from February 2024 confirm its steady growth.
Paragon’s $2 million contract with ICE demonstrates the success of its strategic approach. However, the deployment of Graphite will need to be scrutinized to ensure it aligns with principles of human rights, privacy, and democracy.
