Paladin Leads a Coalition of Investors to Publicly Commit to Safe Investing
WASHINGTON, D.C. – Today, Paladin Capital Group, a leading multi-stage investor in advanced cyber and AI technologies, announced in a meeting with the White House National Security Council staff and other representatives from across the Executive Office of the President a set of investment principles and commitments that promote innovation while protecting America and its allies’ democracies and economies.
With agreement from other leading cyber and advanced technology investors, these voluntary, high-level commitments signal the industry’s dedication to a safer era of investing and solidify a private-public sector partnership to protect the U.S. and its allies from the risks of new technology. These commitments ensure investors take action to put trust, safety, and security at the center of the technological innovation they are creating. Under Paladin’s leadership, other important investors – including America’s Frontier Fund, Ballistic Ventures, Forgepoint Capital, Gula Tech Adventures, Razor’s Edge, Scout Ventures, Shield Capital, and Squadra Ventures – have signed on to the commitments.
“Protecting national security and critical infrastructure has been Paladin’s priority for more than two decades. In today’s world of changing cyber and AI technologies, investors have a responsibility to achieve maximum returns and help protect our democracy and economy by securing the critical infrastructure of the U.S. and our allies,” said Michael Steed, Founder and Managing Partner of Paladin Capital Group. “These responsibilities go hand in hand: trust and resiliency are the bedrock upon which we build good investments and do something good for our country. Through this partnership with our peers, and in line with U.S. Government national security priorities, we can all use these principles to lay the foundation for a safer society and better returns.”
“We applaud these initial commitments to direct trusted capital in ways that harness sophisticated new technologies while promoting the values of free and open societies, which members of the investor community shared for the first time at a meeting at the White House. These efforts are consistent with the Administration’s priorities of countering the misuse of commercial spyware, incentivizing cybersecurity, and encouraging the safe and secure development of AI. We welcome continued efforts like this from the investor community,” said NSC spokesperson Adrienne Watson.
The investment commitments agreed to today by the investors are based upon principles that have long governed Paladin’s collective investments, guided by a concept called “Trusted Capital.” Trusted Capital ensures that investment decisions prioritize trust and safety to maximize returns and ensure that technology protects democratic institutions. The principles agreed to today by the investors recognize the increased risk AI and advanced cyber technologies could pose to free and open societies if in the hands of adversaries and call for investment in protecting U.S. national security and allied interests.
The investment principles agreed to include, among others:
- Free and open societies grounded in economic liberty are the engine that drives technological innovation and the expansion of economic opportunities for all people around the globe;
- Investors must consider—at the time and during the lifetime of an investment—its impact on free and open societies and should seek to uphold the democratic values and principles that undergird them; and
- Investors have a responsibility and obligation to invest in a manner that will ensure the highest possible return while also ensuring that our adversaries and criminal enterprises are not able to exploit the technologies against our countries and allies around the world.
Key commitments include:
- Ensure that companies we invest in are taking affirmative steps to protect themselves against cyber attacks, including threats like ransomware and other nation-state sponsored attacks;
- Ensure that companies we invest in only sell to countries that abide by international law;
- Ensure that companies we invest in undertake robust testing of AI models; and
- Invest consistent with our fiduciary duties in capabilities that will enhance the national security interests of the United States and our allies;
- Avoid investments, consistent with their fiduciary duties and investment approach, in companies that we determine would undermine the defense, national security, and foreign policy interests of free and open societies.
Find the full list of investment principles and commitments here.
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About Paladin Capital Group
Paladin Capital Group was founded in 2001 and has offices in Washington DC, New York, London, Luxembourg, and Silicon Valley. As a multi-stage investor, Paladin’s core strength is identifying, supporting, and investing in innovative companies that develop promising, early-stage technologies to address the critical cyber and advanced technological needs of both commercial and government customers.
Combining proven investment experience with deep expertise in global security, cyber technology, and cutting-edge research, Paladin has invested in more than 70 companies since 2008 and has been a trusted partner to investors, entrepreneurs, and governments for over two decades.
For more on Paladin Capital Group, follow us on Twitter at @Paladincap and on LinkedIn or visit us at www.paladincapgroup.com.