Ballistic Ventures targets $490 million raise as AI fuels cybersecurity surge
The San Francisco firm filed to raise $360 million for a third flagship fund and $130 million for a new vehicle amid growing AI-driven cyber threats.
Ballistic Ventures, the cybersecurity-focused venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein, has filed with the U.S. Securities and Exchange Commission to raise a total of $490 million across two new funds. The filing seeks $360 million for a third flagship fund, matching the size of the firm’s 2024 fund, and an additional $130 million for a separate vehicle dubbed Ballistic Ventures Fund B. Neither fund had recorded any capital commitments at the time of the filing.
The fundraising effort arrives at a moment when artificial-intelligence tools are reshaping both the threat landscape and the opportunity set for security startups. Microsoft’s latest Digital Defense Report warned that hackers are increasingly leveraging AI for phishing, social engineering, and malware creation, accelerating attack speed and scale. At the same time, venture capital investors are seeing a surge in AI-enabled cybersecurity deals, with AI-centric companies representing roughly 72 percent of U.S. cybersecurity venture transactions through May 2026, up from 36 percent in 2019, according to a JPMorgan Chase report citing PitchBook data. U.S. cybersecurity startups collectively raised $11.5 billion in 2025, the highest annual total since 2022.
Founded in late 2021, Ballistic Ventures brings together a team with deep technical and operational expertise. In addition to Schlein, the firm’s leadership includes Barmak Meftah, former president of AT&T Cybersecurity, and Roger Thornton, a co-founder of Fortify Software and AlienVault. The firm’s portfolio already features notable exits: Talon Cyber Security was acquired by Palo Alto Networks, and Pangea was bought by CrowdStrike. Earlier-stage investments include Armadin, GetReal, Nudge Security, and Oligo Security, reflecting a focus on both mature and emerging security solutions.
Ballistic’s fundraising strategy mirrors that of other cybersecurity-focused investors such as Forgepoint Capital and Ten Eleven Ventures, according to a source familiar with the sector. However, the firm’s connection to Kleiner Perkins, where Schlein spent more than two decades, provides a distinctive pedigree that differentiates it from peers, the same source noted. The firm’s prior fundraising history includes a $300 million debut fund launched in 2022, a $360 million second flagship fund raised in 2024, and a $130 million side vehicle called Ballistic Ventures Fund A, as reported by PitchBook.
The new capital, if secured, would position Ballistic Ventures to back the next wave of AI-driven security innovators. For founders, the firm’s deep network in both venture capital and enterprise security could translate into strategic partnerships and exit pathways. For investors, the funds represent a bet on the continued convergence of AI and cybersecurity, a trend underscored by rising deal flow and heightened corporate concern over AI-enabled threats.
Ballistic Ventures declined to comment on the fundraising plans. As AI continues to amplify both the sophistication of attacks and the demand for advanced defenses, the firm’s ability to deploy fresh capital could shape the competitive dynamics of the cybersecurity market and influence which technologies become the next standard for protecting digital assets.