Ballistic Ventures Seeks $490M Across Two New Funds Amid AI Cybersecurity Surge

Ballistic Ventures, the cybersecurity-focused venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein, is seeking to raise $490 million across two new funds, according to regulatory filings reviewed by TechCrunch.

The San Francisco-based firm filed with the U.S. Securities and Exchange Commission this week to raise $360 million for its third flagship fund—matching the size of its previous fund from 2024—and an additional $130 million for a separate vehicle known as Ballistic Ventures Fund B. Neither fund had recorded any sales at the time of filing.

The fundraising effort coincides with rising concerns that artificial intelligence is enabling more sophisticated cyberattacks. At the same time, the emergence of AI agents is creating new opportunities for cybersecurity startups and the firms that back them.

Founded in late 2021, Ballistic Ventures was established by Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, co-founder of Fortify Software and AlienVault. The firm’s portfolio includes Talon Cyber Security, acquired by Palo Alto Networks, and Pangea, acquired by CrowdStrike, as well as startups such as Armadin, GetReal, Nudge Security, and Oligo Security.

Ballistic’s connections to Kleiner Perkins, where Schlein spent more than two decades, distinguish it from competitors, according to a cybersecurity investor at another venture capital firm who spoke with TechCrunch. Its investment approach, however, resembles that of other cybersecurity-focused investors such as Forgepoint Capital and Ten Eleven Ventures, the person added.

In 2022, Ballistic launched its $300 million debut fund and secured another $360 million for its second flagship fund two years later. It also raised roughly $130 million for Ballistic Ventures Fund A, according to PitchBook data. The new Fund B is targeting a comparable amount.

U.S. cybersecurity startups raised $11.5 billion in 2025, the highest level since 2022, according to a recent JPMorgan Chase report citing PitchBook data. AI-enabled companies represented approximately 72% of U.S. cybersecurity venture deals through May of this year, up from 36% in 2019, the report found.

Separately, Microsoft’s annual Digital Defense Report, released last month, warned that hackers are increasingly leveraging AI for activities ranging from phishing and social engineering to malware development. The technology enables attackers to operate faster and at greater scale, even though many of their core techniques remain unchanged.

Ballistic Ventures declined to comment on its fundraising plans.

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