Paragon was founded in 2019 by veterans of the powerful intelligence unit 8200 of the Israel Defense Forces with the active involvement of former Israeli Prime Minister Ehud Barak as an investor, who is estimated to own a significant portion of the company.

The company received investment from Boston-based Battery Ventures, “considered one of the top venture capital firms in the world,” and two of its founders previously worked for Blumberg Capital, another large U.S. venture capital firm.

In June, Israeli media reported that an American private equity fund owning a portfolio of security companies was in talks to take control of Paragon, estimating its valuation at $1 billion.

To secure its unique U.S.-approved “ethical” position, Paragon has made a “conscious effort” to break into the U.S. market since its founding, notes the Atlantic Council.

In 2019, as Paragon was developing Graphite, the company turned to WestExec Advisors, a top Washington consulting firm co-founded by former Obama administration officials including current U.S. Secretary of State Antony Blinken, to advise on its “strategic approach to the U.S. and European markets,” the company’s director told the Financial Times. Avril Haines, a former WestExec employee, is now the director of US national intelligence.

To stay in the “good graces” of the U.S. government, Paragon in February 2023 hired another DC-based lobbying firm, Holland & Knight, “with a strong track record in sanctions avoidance,” some reports indicate. The lobbying spending disclosure reveals that this campaign spent at least $280,000 in 2023 and 2024.

The fact that the spyware provider was not placed on the Entity List or any of its executives were disciplined by the Biden administration suggests that Paragon’s lobbying efforts were successful.

Moreover, Biden’s executive order leaves sufficient margin for the implementation of tools such as Graphite. When a senior U.S. administration official was asked specifically about potential misuse of Paragon’s flagship product, he responded that the executive order “requires agency heads to review any activities that may be relevant,” without ruling out the possibility of lawful use.

Meanwhile, the company continues to expand and advertise several positions in Israel. In the United States, Paragon increased its presence after signing the executive order and began hiring intelligence veterans, including former CIA and FBI officers, at its subsidiary, “hoping to attract new business.” Fresh reports from February 2024 confirmed continued growth.

Paragon’s $2 million contract with ICE is tangible proof that the company’s approach is paying off. Time will tell whether the use of Graphite will be consistent with the protection of human rights, privacy and democracy.