Cybersecurity firm Ballistic Ventures aims for $490 million in new funding

The firm, co-founded by Ted Schlein, formerly of Kleiner Perkins, intends to secure $360 million for its third flagship fund, mirroring the size of its 2024 fund, and an additional $130 million for a separate fund designated as Ballistic Ventures Fund B. No sales have been recorded for either fund as of the filing date.

The fundraising initiative arrives amidst a surge in cybersecurity concerns fueled by the expanding use of artificial intelligence. The emergence of AI agents has simultaneously created new avenues for cybersecurity startups and the venture capital firms that support them.

Ballistic Ventures was established in late 2021. Its founding team includes Ted Schlein, Barmak Meftah, former president of AT&T Cybersecurity, and Roger Thornton, a co-founder of Fortify Software and AlienVault. The firm’s portfolio includes companies like Talon Cyber Security, acquired by Palo Alto Networks, and Pangea, which was bought by CrowdStrike. Other investments include Armadin, GetReal, Nudge Security and Oligo Security.

A cybersecurity investor at another VC firm noted that Ballistic Ventures’ connection to Kleiner Perkins provides a competitive advantage. However, the firm’s investment approach aligns with those of other cybersecurity-focused investors, such as Forgepoint Capital and Ten Eleven Ventures.

Previously, Ballistic Ventures launched a $300 million debut fund in 2022 and secured an additional $360 million for its second flagship fund in 2024. They also raised approximately $130 million for Ballistic Ventures Fund A, according to PitchBook data. The new Fund B seeks a comparable amount.

According to a recent report by JPMorgan Chase, citing PitchBook data, U.S. cybersecurity startups secured $11.5 billion in funding in 2025, the highest amount since 2022. AI-powered companies accounted for roughly 72% of U.S. cybersecurity venture deals through May of this year, a significant increase from 36% in 2019.

In a recent report, Microsoft cautioned that hackers are increasingly leveraging AI for various malicious activities, including phishing, social engineering, and malware development. This technology enables attackers to operate more swiftly and at a larger scale, despite the underlying techniques remaining largely unchanged. Ballistic Ventures has not provided a comment regarding their fundraising plans.