Ballistic Ventures is seeking to raise $490 million across two funds, according to regulatory filings. The cybersecurity-focused venture firm’s plans arrive as artificial intelligence draws attention from both attackers and the companies working to defend against them.
Two funds, one fundraising push
The San Francisco-based firm filed this week with the U.S. Securities and Exchange Commission to raise $360 million for its third flagship fund. That target matches the size of its second flagship fund, raised in 2024.
A separate vehicle, Ballistic Ventures Fund B, is seeking another $130 million. Neither fund had recorded any sales at the time of filing. Ballistic Ventures declined to comment on its fundraising plans.
The targets add to a sequence of fundraising since the firm’s founding in late 2021. Ballistic announced a $300 million debut fund in 2022, then raised $360 million for its second flagship fund two years later. It also raised about $130 million for Fund A, according to PitchBook data; the new Fund B is aiming for a similar amount.
A cybersecurity firm with experienced founders
Ballistic Ventures was co-founded by former Kleiner Perkins partner Ted Schlein. Its founding team also includes Barmak Meftah, formerly president of AT&T Cybersecurity, and Roger Thornton, who co-founded Fortify Software and AlienVault.
The firm has backed companies at different stages of their journeys. Talon Cyber Security was acquired by Palo Alto Networks, while Pangea was bought by CrowdStrike. Other startups in its portfolio include Armadin, GetReal, Nudge Security and Oligo Security.
Schlein’s more than two decades at Kleiner Perkins give Ballistic a connection to a well-known venture firm. A cybersecurity investor at another VC firm told TechCrunch that this connection helps distinguish Ballistic from rivals, while its investment strategy resembles those of other cybersecurity-focused investors, including Forgepoint Capital and Ten Eleven Ventures.
AI brings new risks and openings
The fundraising effort comes amid growing use of artificial intelligence and concerns that it may enable more sophisticated cyberattacks. The rise of AI agents is also creating opportunities for cybersecurity startups and the investors who back them.
Microsoft’s annual Digital Defense Report, released last month, warned that hackers are increasingly using AI for phishing, social engineering and malware development. The report said the technology lets attackers work faster and at greater scale, even though many underlying techniques remain unchanged.
That combination matters for cybersecurity companies: AI can expand the tools available to attackers while creating demand for new defensive products. For investors such as Ballistic, the changing threat landscape forms part of the backdrop to funding startups in the sector.
Investment activity has picked up
U.S. cybersecurity startups raised $11.5 billion in 2025, the highest level since 2022, according to a recent report by JPMorgan Chase citing PitchBook data. The report also found that AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019.
Those figures point to a sector where AI is increasingly connected to venture investment. Ballistic’s proposed funds would give it new capital to pursue cybersecurity investments, though the filings showed no sales for either vehicle at the time they were submitted.