Ballistic Ventures Seeks $490M Across Two New Funds as AI Reshapes Cybersecurity

Ballistic Ventures has filed with the U.S. Securities and Exchange Commission to raise $490 million across two new funds, according to regulatory documents reviewed by TechCrunch. The San Francisco-based cybersecurity investor is targeting $360 million for its third flagship fund, the same size as the vehicle it raised in 2024, and another $130 million for a separate fund called Ballistic Ventures Fund B. Neither fund had recorded any sales at the time of filing.

The firm was founded in late 2021 by a team that includes Ted Schlein, who spent more than two decades at Kleiner Perkins, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, a co-founder of Fortify Software and AlienVault. Ballistic announced a $300 million debut fund in 2022, raised $360 million for its second flagship two years later, and assembled roughly $130 million for an earlier side vehicle, Fund A, according to PitchBook data.

Ballistic declined to comment on the fundraising plans. The filings describe intentions rather than closed capital, and the final totals could change depending on how limited partners commit.

The pitch lands at a moment when AI is reshaping both sides of security. TechCrunch notes that growing AI use has raised concerns about more sophisticated cyberattacks, while the rise of AI agents has created new openings for security startups and the investors backing them.

Ballistic's track record rests partly on exits: Talon Cyber Security was acquired by Palo Alto Networks, and Pangea was bought by CrowdStrike. Its current portfolio includes Armadin, the agent-swarm security startup founded by Kevin Mandia that raised $255.5 million at a $2.5 billion valuation in October, along with GetReal, Nudge Security and Oligo Security.

Market data explains the limited partner interest. U.S. cybersecurity startups raised $11.5 billion in 2025, the highest total since 2022, according to a JPMorgan Chase report citing PitchBook data. AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, up from 36% in 2019.

Demand is also being pushed by the threat landscape. Microsoft's annual Digital Defense Report, released last month, warned that hackers are increasingly using AI for phishing, social engineering and malware development, letting attackers operate faster and at greater scale even when their underlying techniques stay the same.

What to watch next is execution: whether Ballistic closes the funds at target, how quickly it deploys into AI-native security startups, and whether its Kleiner Perkins pedigree still differentiates it in a field that includes specialists such as Forgepoint Capital and Ten Eleven Ventures.