Safety tech sector sees $6.3 billion investment rise

Paladin Capital Group has published its 2024 report on the Safety Tech industry, revealing notable growth in a sector dedicated to safeguarding users in the digital space.

The latest report from Paladin Capital Group, a multi-stage investor in cyber and AI technologies, shows that global investment in the Safety Tech sector has risen to $6.3 billion. This analysis, the third from Paladin, offers insights into the sector that focuses on technology solutions designed to ensure safer online environments, distinguishing itself from cybersecurity which concentrates on data and network protection.

The report was developed by PUBLIC's Online Safety team, with contributions from Perspective Economics and Dr. Mary Aiken, a noted cyberpsychologist and Paladin's Chief Scientist Safety Tech.

Dr. Aiken commented on the findings, "With threat actors increasingly spreading disinformation, extremism, and illegal content, and exploiting AI in, for example, the generation of deepfakes, it is encouraging that this report shows the global Safety Tech sector is steadily growing and expanding to a host of new countries. Safety Tech solutions offer a means to leverage cutting-edge technologies to protect people worldwide and tackle problematic, harmful, and criminal activities online. Through tech-facilitated solutions, we can foster a safer and more secure cyberspace — for today and for the future."

The International State of Safety Tech report indicated a 14% year-on-year increase in the number of Safety Tech providers globally, illustrating the sector's resilience despite broader drops in global investments. The report also highlighted that 63% of these providers have secured external investments, underscoring the ongoing need for such financial backing.

The report identifies several challenges and opportunities within the sector, including the difficulty of accessing quality training data in the AI-centric areas of Safety Tech. There is also new legislation affecting the industry from countries like the US, India, and Australia, creating a cautious approach among digital platforms as they assess its impacts.

Alex de Carvalho, CEO & Co-Founder at PUBLIC, remarked on the sector's momentum, "The Safety Tech sector continues to experience unprecedented growth with the help of GenAI tools and improved data sharing. We are at a critical juncture where innovative technology must serve the interests of the public sector and place humans at the center of the digital revolution."

Chris Inglis, Senior Strategic Advisor at Paladin Capital Group, added his perspective on the evolving digital landscape, "Everyone is more online than ever before and we need a new 'social contract' for cyberspace to foster shared responsibility to address existing vulnerabilities and emerging threats. Most importantly, safety tech can protect the most critical infrastructure – human infrastructure. This report highlights that the Safety Tech market is developing specialised technologies to counter AI-facilitated threats and cyber fraud, bolstering our global resilience."

Chris Steed, Chief Investment Officer at Paladin Capital Group, emphasised the need for continued investment in the Safety Tech industry, "This past year, Paladin Capital Group formalised a set of investment principles and high-level commitments to promote the trusted, safe, and secure development and use of growing cyber capabilities, such as AI technologies. We have a fundamental responsibility to protect humans who operate within the digital landscape, and this report shows that the safety tech industry needs more external investment to continue to thrive. Venture capital and private equity firms across the globe are beginning to harness the vast opportunities within this sector, and we hope that the industry's consistent growth will encourage further investments in the market."

The report concludes with eight recommendations intended for stakeholders including investors, governments, and Safety Tech providers, offering a strategic roadmap for future growth in the sector. The comprehensive analysis serves as a resource for experts looking to navigate the evolving landscape of Safety Tech.