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Paladin Capital Group Releases Report on International State of Safety Tech in 2023 

Paladin Capital Group

Paladin Capital Group, a multi-stage investor in advanced cyber and AI technologies, released its second report on the state of the Safety Tech industry.

Building on its 2022 report which found evidence of an emerging billion-dollar US market, this updated document analyzed the market with an assessment across multiple countries, governments, and sectors.

The report—completed by Paladin Capital Group, PUBLIC’s Online Safety team, with the support of Perspective Economics and cyberpsychologist and Paladin’s Chief Scientist Safety Tech, Dr. Mary Aiken—found that the international Safety Tech market is experiencing rapid year-to-year growth. In the past three years alone, Safety Tech firms have raised $4.8 billion. That is nearly triple the amount raised between 2011 – 2020.

“Safety Tech” refers to the class of technologies or solutions designed to facilitate safer online experiences and protect users from harmful content, contact or conduct. Whereas cybersecurity relates to protecting data, systems and networks, Safety Tech protects the people who use technology. Solutions in this space focus on reducing risk and harm to users in the everyday online environments by protecting people from mis/disinformation, online harassment, hate, discrimination, and online terrorist content, which increasingly threatens democracy and civil society.

This inaugural International State of Safety Tech report establishes a baseline that will be updated on an annual basis going forward, updating the data on the international landscape, increasing awareness of the maturity and impact of Safety Tech offerings, and driving growth in the Safety Tech sector internationally. Through a combination of desk research, expert interviews, and quantitative market analysis, the researchers found:

  • The number of dedicated Safety Tech providers has almost tripled in the last decade globally to a total of 537 private sector firms or organizations. Across 37 countries, nearly 17,000 people are employed in the Safety Tech industry.  
  • The United States and the United Kingdom together are leading the industry, collectively home to about three-quarters of Safety Tech companies. 
  • In the U.S., more Safety Tech firms are being acquired and embedded into larger tech companies, a trend expected to rise and continue in the coming years. 
  • In 2024, we expect to see greater attention on solutions to improve election integrity and tackle mis/disinformation, driven by global conflict and upcoming high-profile elections in countries that account for over 50% of global GDP.
  • Rapidly developing generative AI technologies and landmark online safety legislation in the EU and UK present unique threats and opportunities to the industry. The recent passing of the Online Safety Act in the UK positions it as a global leader and policymaker in Safety Tech.

 The report is forward-facing, looking to guide both policymakers and tech companies as they work to develop Artificial Intelligence technology safely.

Based on the findings of the research, the report provides a set of tailored recommendations for governments, regulators, international bodies, investors, leading tech companies, and Safety Tech providers in order to drive the next wave of growth in the sector internationally.

The full report is available here.

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. Paladin has invested in more than 70 companies since 2008.

VCWire

06/12/2023