Ballistic Ventures, the San Francisco-based venture capital firm focused on cybersecurity, submitted a filing with the U.S. Securities and Exchange Commission this week indicating plans to raise a total of $490 million. The proposal splits the capital into two distinct vehicles: a $360 million third flagship fund that matches the size of its 2024 raise, and a separate $130 million pool dubbed Ballistic Ventures Fund B. At the time of the filing, neither fund reported any capital commitments.
The fundraising effort arrives as artificial-intelligence technologies reshape the threat landscape, prompting concerns over more sophisticated cyberattacks. A JPMorgan Chase report, citing PitchBook data, showed U.S. cybersecurity startups secured $11.5 billion in 2025, the highest level since 2022. Moreover, AI-enabled companies accounted for roughly 72 percent of U.S. cybersecurity venture deals through May of this year, up from 36 percent in 2019, underscoring the sector’s rapid AI integration.
Founded in late 2021, Ballistic Ventures brings together a team that includes co-founder Ted Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who previously launched security firms Fortify Software and AlienVault. The firm’s portfolio features Talon Cyber Security, which Palo Alto Networks acquired, and Pangea, bought by CrowdStrike, alongside emerging players such as Armadin, GetReal, Nudge Security and Oligo Security.
Ballistic’s connection to Kleiner Perkins, where Schlein spent more than two decades, distinguishes it from many competitors, according to a cybersecurity investor at another venture firm who spoke to TechCrunch. While the firm benefits from that legacy network, its investment approach mirrors that of other specialist funds such as Forgepoint Capital and Ten Eleven Ventures, focusing on early-stage companies that address emerging AI-related security challenges.
Ballistic’s capital-raising track record includes a $300 million debut fund announced in 2,022, followed by a $360 million second flagship fund in 2024. The firm also created a separate vehicle, Ballistic Ventures Fund A, which attracted roughly $130 million, according to PitchBook data. The newly proposed Fund B seeks a comparable amount, aiming to sustain the firm’s momentum amid the expanding AI-driven cybersecurity market.
In its latest Digital Defense Report, Microsoft warned that threat actors are increasingly leveraging artificial intelligence for activities ranging from phishing and social engineering to the development of malware. The report notes that AI enables attackers to operate faster and at larger scale, even though many underlying techniques remain unchanged, highlighting the urgency for advanced defensive solutions.