Ballistic Ventures, a venture capital firm dedicated exclusively to cybersecurity investments, is moving to raise $490 million across two separate funds, according to recent filings submitted to the U.S. Securities and Exchange Commission. The firm was co-founded by Ted Schlein, a longtime partner at the storied Silicon Valley firm Kleiner Perkins, along with a team of seasoned cybersecurity executives.

The San Francisco-based firm filed with the SEC this week to secure $360 million for its third flagship fund - an amount that mirrors the size of its previous fundraise completed in 2024. Alongside that effort, Ballistic is targeting an additional $130 million through a separate vehicle designated as Ballistic Ventures Fund B. As of the time the filings were submitted, neither fund had recorded any investor commitments.

AI-Driven Threats Fuel Investor Appetite for Cybersecurity

The timing of these fundraising efforts reflects a broader shift in the threat landscape. The rapid adoption of artificial intelligence across industries has introduced new and more complex cybersecurity risks, with adversaries increasingly leveraging AI to launch more sophisticated attacks. At the same time, the emergence of AI-powered software agents has opened a fresh wave of opportunities for startups building defensive security tools, and for the investors backing them.

This dynamic has contributed to a notable surge in capital flowing into the cybersecurity sector. According to a recent report by JPMorgan Chase, citing data from PitchBook, U.S. cybersecurity startups raised $11.5 billion in 2025 - the highest annual total since 2022. AI-enabled companies accounted for roughly 72% of all U.S. cybersecurity venture deals through May of this year, a dramatic increase from 36% in 2019.

In a separate development, Microsoft issued a warning in its annual Digital Defense Report last month, noting that malicious actors are increasingly turning to AI for a range of activities, including phishing campaigns, social engineering, and malware development. The report highlighted that AI is enabling attackers to operate at greater speed and scale, even when the core techniques they rely on have not fundamentally changed.

A Firm Built on Deep Cybersecurity Expertise

Ballistic Ventures was established in late 2021 by a founding team with deep roots in both the cybersecurity industry and the venture capital world. Ted Schlein, who spent more than two decades at Kleiner Perkins, brings a long track record of investing in technology companies. He is joined by Barmak Meftah, formerly the president of AT&T Cybersecurity, and Roger Thornton, who co-founded two well-known security companies - Fortify Software and AlienVault.

The firm's portfolio reflects its focus on early-stage and growth-stage cybersecurity companies. Among its notable investments, Talon Cyber Security was acquired by Palo Alto Networks, and Pangea was purchased by CrowdStrike. Other companies in the portfolio include Armadin, GetReal, Nudge Security, and Oligo Security.

According to a cybersecurity investor at a competing venture firm, Ballistic's historical association with Kleiner Perkins gives it a degree of differentiation in the market. That said, the firm's overall investment approach is broadly comparable to that of other dedicated cybersecurity investors such as Forgepoint Capital and Ten Eleven Ventures.

A Track Record of Steady Fund Growth

Ballistic's fundraising history shows consistent growth since its launch. In 2022, the firm announced its debut fund of $300 million. Two years later, it raised a second flagship fund totaling $360 million. In parallel, the firm raised approximately $130 million through a separate vehicle known as Ballistic Ventures Fund A, according to PitchBook data. The newly filed Fund B is targeting a comparable amount to that earlier vehicle.

The third flagship fund, at $360 million, would maintain the same scale as its predecessor, suggesting the firm is focused on sustaining its investment pace rather than dramatically expanding its fund size. Ballistic Ventures declined to provide any comment regarding its current fundraising activity.