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paladincapgroup.com

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Investments

187

Portfolio Exits

36

Funds

7

Service Providers

1

About Paladin Capital Group

Founded in 2001, Paladin Capital Group is a private equity financing firm.

Paladin Capital Group Headquarter Location

2001 Pennsylvania Avenue NW Suite 400

Washington, DC, 20006,

United States

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CB Insights Intelligence Analysts have mentioned Paladin Capital Group in 1 CB Insights research brief, most recently on Sep 18, 2019.

Latest Paladin Capital Group News

Google spinoff Sandbox AQ gets backing from CIA’s venture arm

May 5, 2022

The CIA’s In-Q-Tel was joined by Paladin Capital Group, which backs innovative tech companies, in Sandbox AQ’s first round of fundraising by Bloomberg May 5, 2022 The Central Intelligence Agency’s venture capital firm has invested in Sandbox AQ, a Google software spinoff that is focused on harnessing artificial intelligence and quantum science. The CIA’s In-Q-Tel was joined by Paladin Capital Group, which backs innovative tech companies, in Sandbox AQ’s first round of fundraising. The round – which is oversubscribed and still open – has garnered ‘well into the nine figures,’ Sandbox AQ chief executive officer Jack Hidary said in an interview. Founded in 2016, Sandbox AQ was spun off from Alphabet’s Google earlier this month and is chaired by Eric Schmidt, the search giant’s former CEO. Instead of making a quantum computer of its own, Sandbox AQ seeks to develop software architecture that can replace existing cryptography with complex new algorithms that are deemed impossible to crack by quantum computers, a nascent technology that isn’t yet operationally viable. Steve Bowsher, president of In-Q-Tel, said the aim of the equity stake was to develop new encryption software that could resist the prospect of code-cracking by emergent quantum computing, as well as quantum sensors and other products. “We want them to be able to sell into the U.S. government,” Bowsher said in an interview. He added the venture firm had spent the past few weeks introducing Sandbox AQ’s work to some of the eight US intelligence agencies that it works with, which include the National Security Agency, Federal Bureau of Investigation and CIA. Paladin Capital chief investment officer Chris Steed predicted Sandbox AQ could come to dominate a market that would be worth tens of billions of dollars. Industry analysts IQT Research estimated last year the market for post-quantum cryptography will grow to $2.3bn by 2026 and $7.6bn by 2030. In-Q-Tel and Paladin’s backing would allow Sandbox AQ to develop relationships to work closely with US and allied governments on roll out, said Hidary. While it was ‘wonderfu’ to have early-mover advantage, the strength of its software, expert team of more than 55 people and alliances were more critical for success, he added. Scientists differ over when a breakthrough in quantum computing might arrive, with estimates spanning five to 50 years – or never at all. Joe Altepeter, who manages a quantum research program at the Pentagon’s Defense Advanced Research Projects Agency, said last month there was a lot of ‘hype’ over industry claims about the arrival of quantum computing, which has drawn billions of dollars in investment, though several ‘hardware miracles’ still stand in the way. While there was “definitely still a possibility that quantum ultimately doesn’t develop” and so the problem would never manifest, Bowsher said it was important to prepare in advance “because you don’t want to be caught flat-footed.” He added that it was hard to know how close China, which is investing billions of dollars into quantum research, might be to cracking public-key encryption. “If you wait until then, it would be too late,” he said. Experts warn encrypted data that is stolen and stockpiled en masse could be cracked at scale as soon as quantum computing comes online. That could risk troves of commercial and government secrets, some of which remain classified for 25 years or far longer. Wary of the coming threat, the Biden administration in January tasked national security systems to come up with transition plans to help defend against the theoretical threat to public-key encryption posed by the arrival of quantum computers. The National Institute of Standards and Technology, known as NIST, is seeking to select new quantum-proof encryption algorithms from seven finalists shortly as part of a global competition. Two of the shortlisted algorithms come from the team behind PQShield, an Oxford University spinoff that also offers post-quantum cryptographic software. Winners will be slotted into Sandbox AQ’s and other companies’ software architecture. Sandbox AQ has also newly formed partnerships with Ernst & Young and Deloitte to offer services to thousands of their customers, including initially an inventory of existing software. Financial, pharmaceutical and telecommunications companies, which have some of the most sensitive data to protect, are likely to be at the forefront of efforts to create a new marketplace in post-quantum cryptography. “We’re not being alarmist and saying you need to change everything today,” said Colin Soutar, who leads cyber strategy at Deloitte Risk & Financial Advisory. “But I do want to say that organizations should start taking a prudent look at what they have.” Some in the private sector are already taking the plunge. Mount Sinai Health System in New York and its 7,000 physicians became a customer of Sandbox AQ’s discovery services last month, said Chief Information Officer Kristin Myers. That will enable the healthcare company, which has revenue of $9.3 billion a year, to review all the software it would need to update to prepare for post-quantum cryptography, before determining if it will go ahead with the transition. “I think this is the way the industry will go, especially in the next five years,” Myers said, adding she took the step to safeguard patient confidentiality.

Paladin Capital Group Investments

187 Investments

Paladin Capital Group has made 187 investments. Their latest investment was in Hubble Technology as part of their Seed VC on May 5, 2022.

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Paladin Capital Group Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

5/5/2022

Seed VC

Hubble Technology

$9M

Yes

Accel, Falcon Fund, and Undisclosed Investors

2

5/2/2022

Private Equity

Sandbox AQ

Yes

1

3/22/2022

Series A

Decentriq

$15M

No

6

3/17/2022

Series C

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$99M

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10

3/9/2022

Series C

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$99M

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10

Date

5/5/2022

5/2/2022

3/22/2022

3/17/2022

3/9/2022

Round

Seed VC

Private Equity

Series A

Series C

Series C

Company

Hubble Technology

Sandbox AQ

Decentriq

Subscribe to see more

Subscribe to see more

Amount

$9M

$15M

$99M

$99M

New?

Yes

Yes

No

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Subscribe to see more

Co-Investors

Accel, Falcon Fund, and Undisclosed Investors

Sources

2

1

6

10

10

Paladin Capital Group Portfolio Exits

36 Portfolio Exits

Paladin Capital Group has 36 portfolio exits. Their latest portfolio exit was BA Insight on February 24, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

2/24/2022

Acquired

$99M

1

8/2/2021

Acquired

10

12/23/2020

Acq - Fin

12

10/21/2019

Acquired

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$99M

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10

9/12/2019

IPO

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$99M

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10

Date

2/24/2022

8/2/2021

12/23/2020

10/21/2019

9/12/2019

Exit

Acquired

Acquired

Acq - Fin

Acquired

IPO

Companies

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Valuation

$99M

$99M

$99M

Acquirer

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Sources

1

10

12

10

10

Paladin Capital Group Acquisitions

4 Acquisitions

Paladin Capital Group acquired 4 companies. Their latest acquisition was GO-Ethanol on February 19, 2009.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

2/19/2009

Debt

$99M

$125M

Leveraged Buyout

1

9/1/2005

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$99M

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10

5/24/2004

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$99M

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0

3/5/2004

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$99M

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0

Date

2/19/2009

9/1/2005

5/24/2004

3/5/2004

Investment Stage

Debt

Companies

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Valuation

$99M

$99M

$99M

$99M

Total Funding

$125M

Note

Leveraged Buyout

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Subscribe to see more

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Sources

1

10

0

0

Paladin Capital Group Fund History

7 Fund Histories

Paladin Capital Group has 7 funds, including European Cyber Fund.

Closing Date

Fund

Fund Type

Status

Amount

Sources

4/5/2017

European Cyber Fund

1

9/21/2015

Paladin Cyber Fund

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10

9/22/2008

Paladin III LP

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$99M

10

5/8/2008

Paladin III LP (Supp)

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$99M

10

7/1/2004

Paladin Homeland Security Fund LP

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$99M

10

Closing Date

4/5/2017

9/21/2015

9/22/2008

5/8/2008

7/1/2004

Fund

European Cyber Fund

Paladin Cyber Fund

Paladin III LP

Paladin III LP (Supp)

Paladin Homeland Security Fund LP

Fund Type

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Status

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Amount

$99M

$99M

$99M

Sources

1

10

10

10

10

Paladin Capital Group Service Providers

1 Service Provider

Paladin Capital Group has 1 service provider relationship

Service Provider

Associated Rounds

Provider Type

Service Type

Counsel

General Counsel

Service Provider

Associated Rounds

Provider Type

Counsel

Service Type

General Counsel

Partnership data by VentureSource

Paladin Capital Group Team

14 Team Members

Paladin Capital Group has 14 team members, including current Founder, Managing Director, Michael R. Steed.

Name

Work History

Title

Status

Mark A. Maloney

Founder

Current

Michael R. Steed

Founder, Managing Director

Current

Christopher Steed

Chief Investment Officer

Current

Alf L. Andreassen

Managing Director

Current

Paul A. Conley

Managing Director

Current

Name

Mark A. Maloney

Michael R. Steed

Christopher Steed

Alf L. Andreassen

Paul A. Conley

Work History

Title

Founder

Founder, Managing Director

Chief Investment Officer

Managing Director

Managing Director

Status

Current

Current

Current

Current

Current

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