Ballistic Ventures, the cybersecurity-focused venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein, is looking to raise $490 million across two new funds, according to regulatory filings obtained by TechCrunch. The San Francisco-based firm submitted documentation to the U.S. Securities and Exchange Commission this week for a $360 million third flagship fund and a separate $130 million vehicle called Ballistic Ventures Fund B. The fundraising push arrives as artificial intelligence's expanding use has sparked worries about increasingly sophisticated cyber threats.
The firm's third flagship fund targets $360 million, matching the amount it secured for its second flagship fund in 2024, TechCrunch learned through SEC filings. Neither fund had logged any sales when the filings were submitted. Ballistic previously announced a $300 million debut fund in 2022 and collected roughly $130 million for a separate vehicle called Ballistic Ventures Fund A, with the new Fund B aiming for a comparable sum. U.S. cybersecurity startups pulled in $11.5 billion in 2025, the highest total since 2022, a recent JPMorgan Chase report stated, citing PitchBook data. AI-enabled companies made up approximately 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019.
The firm's founding team includes Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who co-founded security companies Fortify Software and AlienVault, after its late 2021 launch. Ballistic has invested in companies including Talon Cyber Security, which Palo Alto Networks acquired, and Pangea, purchased by CrowdStrike, alongside startups such as Armadin, GetReal, Nudge Security, and Oligo Security. A cybersecurity investor at another VC firm told TechCrunch that Ballistic's connections to storied venture capital firm Kleiner Perkins, where Schlein worked for more than two decades, help distinguish it from competitors, though its investment approach resembles those of other cybersecurity-focused investors like Forgepoint Capital and Ten Eleven Ventures.
The rise of AI agents has opened fresh opportunities for cybersecurity startups and the venture capital firms supporting them, the report notes. Microsoft, in its annual Digital Defense Report released last month, cautioned that hackers are progressively using AI for activities ranging from phishing and social engineering to malware development. The technology is enabling attackers to work faster and at larger scale, even though many of their core techniques haven't changed. The growing intersection of AI and cybersecurity threats has created an environment where specialized venture capital firms can capitalize on urgent security needs while traditional attack methods become supercharged by new technology.
Ballistic Ventures declined to comment on its fundraising plans. The firm's ability to secure capital at previous fund sizes signals investor confidence that the AI-driven threat landscape will continue generating startup opportunities worth backing. Established venture firms with deep cybersecurity expertise may find themselves better positioned than generalists as the technical complexity of defending against AI-enhanced attacks demands specialized judgment that only sector-focused investors can consistently deliver.