Ballistic Ventures Seeks $490 Million for Two New Cyber Funds

Ballistic Ventures, the cybersecurity-focused venture firm co-founded by former Kleiner Perkins partner Ted Schlein, is seeking $490 million across two new funds, according to regulatory filings seen by TechCrunch. Neither vehicle had recorded any sales at the time of filing — meaning the total remains a target, not money in the bank.

The San Francisco 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 raised in 2024. It is simultaneously seeking $130 million for a separate vehicle called Ballistic Ventures Fund B. That structure repeats the firm's earlier playbook: in 2022 it announced a $300 million debut fund, then raised $360 million for its second flagship two years later, alongside roughly $130 million for a side vehicle called Ballistic Ventures Fund A, per PitchBook data. The new Fund B targets a similar amount to Fund A.

Why now? AI is rewriting the security market

The fundraising plans land amid a surge of investor interest driven by artificial intelligence. The growing use of AI has raised concerns about more sophisticated cyberattacks, while the rise of AI agents has created new opportunities for cybersecurity startups and the venture firms backing them.

The numbers back that shift. U.S. cybersecurity startups raised $11.5 billion in 2025, the highest since 2022, according to a recent JPMorgan Chase report citing PitchBook data. AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May of this year — double the 36% share recorded in 2019. In plain terms: AI-linked security firms now dominate roughly three of every four deals in the sector.

Microsoft, in its annual Digital Defense Report released last month, added a warning from the other side of the market. Hackers are increasingly using AI for activities ranging from phishing and social engineering to malware development. The technology lets attackers operate faster and at greater scale, even as many of their underlying techniques remain unchanged. Faster attackers, in turn, feed demand for the defensive startups Ballistic funds.

Who is behind the firm, and what has it backed?

Ballistic Ventures was founded in late 2021. Its founding team includes Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who co-founded the security companies Fortify Software and AlienVault.

The firm's portfolio includes Talon Cyber Security, acquired by Palo Alto Networks, and Pangea, bought by CrowdStrike — two exits to two of the largest names in security. Its other investments include Armadin, GetReal, Nudge Security and Oligo Security.

A cybersecurity investor at a competing VC firm told TechCrunch that Ballistic's ties to Kleiner Perkins, where Schlein spent more than two decades, help set it apart from rivals. The same investor was blunt about the rest: Ballistic's investment strategy is similar to those of other cybersecurity-focused investors, including Forgepoint Capital and Ten Eleven Ventures. That caveat matters — the firm's differentiation rests heavily on pedigree rather than a distinct strategy.

What is not being said

Ballistic Ventures declined to comment on its fundraising plans. That silence leaves open questions the filings do not answer: whether limited partners have committed anything yet, when the funds expect to hold a first close, and how the capital will be split between early-stage and later-stage security deals.

The context suggests tailwinds. A sector that raised $11.5 billion last year, with AI-enabled firms taking a 72% share of deals, gives a dedicated cybersecurity investor a clear pitch to limited partners. Whether Ballistic can convert that pitch into $490 million — and repeat the exits it delivered through Talon and Pangea — will define its third act.