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 at a time when artificial intelligence is reshaping both the threat landscape and the startup market that aims to defend it. The San Francisco-based firm disclosed the fundraising plans in regulatory filings this week, according to material reviewed by TechCrunch.
Ballistic Ventures targets two funds totaling $490 million
According to the filings, Ballistic Ventures is aiming to raise $360 million for its third flagship fund and another $130 million for a separate vehicle called Ballistic Ventures Fund B. The $360 million target matches the size of the firm’s previous flagship fund, which it raised in 2024. Neither fund had recorded any sales at the time of filing.
The new filings extend a rapid fundraising pace for the firm, which has been building out its platform since its launch in late 2021. In 2022, Ballistic announced a $300 million debut fund, then raised $360 million for its second flagship fund two years later. It also previously raised about $130 million for a separate vehicle called Ballistic Ventures Fund A, according to PitchBook data. The newly proposed Fund B is targeting a similar amount.
AI is changing the cybersecurity investment picture
The fundraising comes as artificial intelligence has amplified concerns about more advanced cyberattacks while simultaneously creating new business opportunities for security startups. As companies deploy AI systems more broadly, venture firms focused on cybersecurity are seeing a growing pipeline of startups built to secure those systems, detect new forms of fraud and help enterprises manage machine-speed threats.
That dual effect is central to Ballistic’s timing. AI is helping attackers move faster and at greater scale, but it is also pushing buyers to spend more aggressively on tools that can defend digital infrastructure, identity systems and cloud environments. For investors, that has made cybersecurity one of the more resilient corners of the venture market even as broader funding conditions remain uneven.
Who is behind Ballistic Ventures
Ballistic Ventures was founded by a team with deep roots in security investing and operating experience. Schlein, who spent more than two decades at Kleiner Perkins, is joined by former AT&T Cybersecurity president Barmak Meftah and Roger Thornton, who co-founded the security companies Fortify Software and AlienVault.
The firm’s background gives it a clear identity in a crowded venture market. A cybersecurity investor at another VC firm told TechCrunch that Ballistic’s ties to Kleiner Perkins help distinguish it from rivals, even though its overall investment approach is similar to that of other specialized investors such as Forgepoint Capital and Ten Eleven Ventures. That combination of pedigree and specialization appears to be part of Ballistic’s pitch to founders and limited partners alike.
Portfolio wins and active security bets
Ballistic has already built a portfolio that includes several well-known names in the cybersecurity sector. Among its investments are Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was bought by CrowdStrike. The firm has also backed newer startups including Armadin, GetReal, Nudge Security and Oligo Security.
Those investments show the range of the firm’s focus, from products aimed at enterprise security teams to startups working on newer problems introduced by modern cloud and AI environments. The list also suggests that Ballistic has been active across both early-stage bets and companies that have reached the kind of scale attractive to strategic acquirers.
Why the fundraise matters now
The broader market backdrop helps explain why Ballistic is once again raising money. A recent JPMorgan Chase report, citing PitchBook data, said U.S. cybersecurity startups raised $11.5 billion in 2025, the highest total since 2022. The same report said AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019.
That shift reflects how quickly the market has changed. Investors who once focused primarily on endpoint, network and cloud security are now also paying close attention to startups that address AI-specific risks, including model abuse, automated phishing and identity compromise at scale. The growth in AI-related deal activity suggests that many venture firms expect cybersecurity demand to remain strong even if the technology stack evolves quickly.
Microsoft’s warning adds urgency
The concern is not limited to investors. Microsoft said in its annual Digital Defense Report, released last month, that hackers are increasingly using AI for tasks ranging from phishing and social engineering to malware development. The company said the technology allows attackers to operate faster and at larger scale, even when the underlying techniques remain familiar.
That warning reinforces a theme now running through both enterprise security planning and venture capital strategy: AI is not simply another software category. It is a force multiplier for both defenders and attackers, and that makes cybersecurity one of the clearest areas where AI’s risks and opportunities overlap.
Ballistic’s position in the cybersecurity market
Ballistic’s latest fundraising effort also highlights the continued appeal of specialist venture firms in security. While generalist investors may still back cybersecurity startups, dedicated funds often market themselves as better able to assess technical depth, understand sales cycles and support founders navigating a complex buyer environment.
For Ballistic, the challenge will be to keep translating that specialization into strong returns as the category becomes more crowded. The firm’s previous investments give it a credible track record, but the market is also drawing more capital and more competition as AI expands the number of security problems that startups can attack.
Still, the combination of a favorable thematic backdrop, a strong sector reputation and a history of backing companies that have been acquired by major security vendors may help support the new raise. If successful, the two funds would give Ballistic more room to invest at a moment when cybersecurity founders are pitching tools for a rapidly changing AI era.
Source: Original report
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Last Modified: November 4, 2026 at 10:31 pm
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