Ballistic Ventures Seeks $490M for Two New Cybersecurity Funds Amid AI Boom

Ballistic Ventures, the San Francisco cybersecurity venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein, is seeking to raise $490 million across two new funds, according to recent regulatory filings. The firm has filed with the U.S. Securities and Exchange Commission for $360 million for its third flagship fund, matching the size of the fund it raised in 2024, and for an additional $130 million for a separate vehicle, Ballistic Ventures Fund B. Founded in late 2021, Ballistic was established by Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who previously co-founded Fortify Software and AlienVault. The firm has backed companies including Talon Cyber Security, acquired by Palo Alto Networks, and Pangea, acquired by CrowdStrike, along with portfolio companies such as Armadin, GetReal, Nudge Security and Oligo Security. The fundraising push comes amid growing investor attention to cybersecurity as artificial intelligence reshapes both attack methods and defense needs. Rising concerns about AI-enabled cyberattacks have heightened demand for security startups, while AI agents and AI-native tools are creating new product categories. Cybersecurity startups in the United States raised $11.5 billion in 2025, the highest total since 2022, according to JPMorgan Chase and PitchBook data. AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May, up from 36% in 2019. Ballistic’s connections to Kleiner Perkins, where Schlein spent more than two decades, distinguish it from some rivals, though its investment approach remains similar to other cybersecurity-focused funds such as Forgepoint Capital and Ten Eleven Ventures. The firm launched with a $300 million debut fund in 2022, followed by a $360 million second flagship fund in 2024 and about $130 million for an earlier separate vehicle, Ballistic Ventures Fund A. The AI security backdrop has also been sharpened by Microsoft’s annual Digital Defense Report, which warned that attackers are increasingly using AI for phishing, social engineering and malware development, allowing them to operate faster and at larger scale. Ballistic Ventures declined to comment on its fundraising plans.