Paragon was established in 2019 by former members of the Israel Defense Forces’ intelligence Unit 8200, with former Israeli prime minister Ehud Barak participating as an investor, holding a significant portion of the company. The company has attracted investment from Battery Ventures, a notable venture capital firm based in Boston, and two of its founders previously worked with Blumberg Capital, another major US venture capital firm.
In June, Israeli media reported that a US private equity fund with a focus on security companies was negotiating to acquire control of Paragon, valuing the company at approximately $1 billion. Paragon has made concerted efforts since its inception to penetrate the US market, securing its unique US-approved “ethical” positioning, as noted by the Atlantic Council.
During the development of its product Graphite in 2019, Paragon engaged WestExec Advisors, a consulting firm in Washington, DC, co-founded by former Obama administration officials, including current US Secretary of State Antony Blinken. This firm advised Paragon on strategic approaches to the US and European markets. Avril Haines, who was part of WestExec, now serves as the US Director of National Intelligence.
In February 2023, to maintain favorable relations with the US government, Paragon employed Holland & Knight, a DC-based lobbying firm known for its success in avoiding sanctions. Lobbying disclosures reveal that Paragon spent at least $280,000 on these efforts in 2023 and 2024.
The company’s executives have not been sanctioned by the Biden administration, and Paragon has not been placed on an entity list, indicating the effectiveness of its lobbying. Moreover, an executive order from President Biden allows some flexibility for using tools like Graphite. A senior US administration official mentioned that the order requires heads of agencies to review relevant activities without ruling out lawful use.
Paragon is continuing its growth trajectory, advertising several roles in Israel and expanding its US subsidiary by hiring intelligence veterans, including former CIA and FBI officers. This expansion is aimed at acquiring new business opportunities. Reports from February 2024 confirm Paragon’s steady growth.
The company’s recent $2 million contract with ICE underscores the success of its strategy. However, it remains to be seen if the deployment of Graphite will uphold human rights, privacy, and democratic values.
