Cybersecurity-focused Ballistic Ventures seeks $490 million for two new funds
Ballistic Ventures, a U.S. venture capital firm specializing in cybersecurity startups, has filed with regulators to raise $490 million across two new funds. The plans come as AI fuels both more sophisticated cyberattacks and new opportunities for security startups.
Ballistic Ventures, a San Francisco-based venture capital firm that invests in cybersecurity startups, is seeking to raise $490 million across two new funds, according to filings with the U.S. Securities and Exchange Commission (SEC) made this week and reported by TechCrunch. The firm was co-founded by Ted Schlein, a former partner at the venture firm Kleiner Perkins.
Two new funds
The third flagship fund is targeting $360 million, the same size as the previous fund raised in 2024. Another $130 million is sought for a separate vehicle called Ballistic Ventures Fund B. Neither fund had recorded any sales when the filing was made. Ballistic Ventures declined to comment on its plans.
The firm was founded in late 2021. Its founding team includes Schlein, Barmak Meftah, a former president of AT&T Cybersecurity, and Roger Thornton, who co-founded the security companies Fortify Software and AlienVault. In 2022 Ballistic announced a $300 million debut fund, and two years later it raised $360 million for its second flagship fund. According to PitchBook data, it also raised about $130 million for a separate vehicle, Ballistic Ventures Fund A, and Fund B is aiming for a similar amount.
The firm has backed Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, bought by CrowdStrike, along with startups including Armadin, GetReal, Nudge Security and Oligo Security. A cybersecurity investor at another VC firm said Ballistic's ties to Kleiner Perkins, where Schlein spent more than two decades, help set it apart, though its investment strategy resembles those of other cybersecurity-focused investors such as Forgepoint Capital and Ten Eleven Ventures.
Industry backdrop
A JPMorgan Chase report citing PitchBook data said U.S. cybersecurity startups raised $11.5 billion in 2025, the highest since 2022. AI-enabled companies made up about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019.
Separately, Microsoft's annual Digital Defense Report, released last month, warned that hackers are increasingly using AI for activities from phishing and social engineering to malware development. The technology lets attackers work faster and at greater scale, even though many of their underlying techniques remain unchanged.
