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

Cybersecurity venture capital firm Ballistic Ventures has initiated fundraising efforts for $490 million across two new funds, according to regulatory filings [1]. The San Francisco-based firm is targeting $360 million for its third flagship fund alongside an additional $130 million for a separate vehicle named Ballistic Ventures Fund B [1].

Expansion Amid Growing Artificial Intelligence Security Challenges

The fundraising initiative arrives as the expanded deployment of artificial intelligence elevates anxieties regarding more intricate cyberthreats [1]. The emergence of AI agents has simultaneously unlocked novel commercial prospects for cybersecurity startups and the venture capital entities funding them [1]. Regulatory filings submitted to the U.S. Securities and Exchange Commission confirm that neither of the newly proposed funds had recorded any sales at the time of the filing [1]. Ballistic Ventures declined to comment regarding its latest fundraising strategy [1].

Co-founded in late 2021, Ballistic Ventures is led by a team that includes former Kleiner Perkins partner Ted Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, co-founder of security firms Fortify Software and AlienVault [1]. The venture firm's historical investments feature companies such as Talon Cyber Security—which was acquired by Palo Alto Networks—and Pangea, which was bought by CrowdStrike [1]. Its current portfolio also includes early-stage startups like Armadin, GetReal, Nudge Security, and Oligo Security [1].

Historical Fund Performance and Investment Strategy

The structure of the new third flagship fund mirrors the size of the firm's previous flagship fund raised in 2024 [1]. Ballistic Ventures established its operations with a $300 million debut fund in 2022, followed two years later by its second flagship fund worth $360 million [1]. Furthermore, the firm previously raised approximately $130 million for a separate investment vehicle designated as Ballistic Ventures Fund A, matching the target amount set for the newly filed Fund B, according to PitchBook data [1].

An anonymous cybersecurity investor at a competing venture capital firm noted that Ballistic's historical connections to prominent venture firm Kleiner Perkins—where Schlein worked for more than two decades—help differentiate it from market competitors [1]. However, the source added that its overall investment methodology remains comparable to other security-focused investment peers, including Forgepoint Capital and Ten Eleven Ventures [1].

Broader Venture Landscape in Cybersecurity

The broader market context highlights a substantial rebound in cybersecurity funding. According to a JPMorgan Chase report citing PitchBook data, U.S. cybersecurity startups secured $11.5 billion in total funding during 2025, marking the highest volume recorded since 2022 [1]. Furthermore, the data indicates that AI-enabled companies represented roughly 72% of all U.S. cybersecurity venture transactions through May of the current year, up significantly from 36% in 2019 [1].

Parallel warnings from major technology enterprises underscore the urgency within the sector. In its annual Digital Defense Report published the previous month, Microsoft cautioned that threat actors are increasingly leveraging artificial intelligence for diverse operations, spanning phishing, social engineering, and malware creation [1]. Microsoft reported that AI enables attackers to execute operations with greater speed and scale, even though many underlying tactical methods remain consistent [1].

Ballistic Ventures was established in late 2021 by cybersecurity industry veterans and former Kleiner Perkins partner Ted Schlein. The firm focuses investments on the cybersecurity sector, which has experienced increased capital allocation as enterprise security needs evolve alongside rapid advancements in artificial intelligence.

The capital deployment by specialised venture funds like Ballistic Ventures highlights how institutional investors are scaling bets on cybersecurity to counter sophisticated AI-driven threats. This trend directly influences the funding environment for early-stage enterprise security startups.

The concentration of venture capital into AI-enabled cybersecurity startups could accelerate the development of automated defense tools. Increased dry powder at specialized firms may also drive higher valuations for early-stage security technology companies.

The success of the proposed $490 million fundraising remains unconfirmed, as regulatory filings indicate neither fund had recorded sales at the time of submission.