Ballistic Ventures seeks $490M amid AI cyber risks

The cybersecurity VC firm filed for two new funds as AI drives more advanced attacks and helps fuel investor demand for security startups.

Ballistic Ventures, the cybersecurity venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein, is seeking to raise $490 million across two new funds. The move comes as artificial intelligence is reshaping both sides of the cyber market, making attacks more sophisticated while also opening new opportunities for security startups.

The San Francisco-based firm has filed with the U.S. Securities and Exchange Commission to raise $360 million for its third flagship fund and another $130 million for a separate vehicle called Ballistic Ventures Fund B. At the time of the filing, neither fund had recorded any sales, according to IT-PUB News.

Ballistic returns to market with two more funds

The planned raise follows Ballistic’s earlier fundraising rounds. The firm announced a $300 million debut fund in 2022 and raised $360 million for its second flagship fund two years later. It also raised about $130 million for a separate vehicle called Ballistic Ventures Fund A, according to PitchBook data.

Fund B is targeting roughly the same amount. The third flagship fund is also set at $360 million, matching the size of the previous fund raised in 2024.

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

AI is lifting both cyber fears and startup funding

The timing reflects a broader shift in the cybersecurity market. The rise of AI has heightened concerns about more advanced cyberattacks, while the growth of AI agents has created new openings for startups building security tools.

A recent JPMorgan Chase report, citing PitchBook data, said U.S. cybersecurity startups raised $11.5 billion in 2025, the highest level since 2022. The same report said AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, up from 36% in 2019.

That helps explain why firms such as Ballistic are still raising money even as the market gets more crowded. Investors are continuing to bet that companies building security products for the AI era will find demand from businesses trying to protect data, systems, and users.

Ballistic leans on its network in a crowded sector

Ballistic has already backed several well-known cybersecurity startups. Its portfolio includes Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was bought by CrowdStrike. Other startups it has supported include Armadin, GetReal, Nudge Security, and Oligo Security.

One cybersecurity investor at another venture firm told TechCrunch that Ballistic’s ties to Kleiner Perkins help distinguish it from rivals. Schlein spent more than two decades at Kleiner Perkins. At the same time, the investor said Ballistic’s investment approach is similar to that of other cybersecurity-focused firms such as Forgepoint Capital and Ten Eleven Ventures.

That leaves Ballistic in a familiar position for specialist venture firms: its brand and network may be a big part of the pitch, even if its strategy is not dramatically different from other firms in the sector.

Microsoft warning adds urgency to the AI security push

The fundraising effort arrives as concern grows over how hackers are using AI. Microsoft said in its annual Digital Defense Report last month that attackers are increasingly using AI for phishing, social engineering, and malware development.

According to Microsoft, the technology is helping attackers move faster and operate at greater scale, even if many of the underlying techniques remain the same. That helps explain why cybersecurity remains a priority for both companies and investors.

Ballistic’s new fundraising plans fit squarely into that backdrop. As AI tools spread, businesses face more pressure to defend themselves, and startups building those defenses may have an easier time attracting capital.

Ballistic Ventures declined to comment on its fundraising plans.