Ballistic Ventures, the cybersecurity-focused venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein, is seeking to raise $490 million across two new funds, according to filings with the U.S. Securities and Exchange Commission.
The San Francisco-based firm filed this week to raise $360 million for its third flagship fund, matching the size of its previous fund raised in 2024, and $130 million for a separate vehicle called Ballistic Ventures Fund B. Neither fund had recorded any sales at the time of filing, and the firm declined to comment on its fundraising plans.
The fundraising drive comes as the growing use of artificial intelligence raises concerns about more sophisticated cyberattacks, while the rise of AI agents has created new opportunities for cybersecurity startups and the venture capital firms backing them.
Founded in late 2021, Ballistic's founding team includes Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who co-founded the security companies Fortify Software and AlienVault. The firm has backed Talon Cyber Security, acquired by Palo Alto Networks, and Pangea, bought by CrowdStrike, alongside startups such as Armadin, GetReal, Nudge Security and Oligo Security.
A cybersecurity investor at another VC firm told TechCrunch that Ballistic's ties to Kleiner Perkins, where Schlein spent more than two decades, help set it apart from rivals. Its investment strategy, however, resembles those of other cybersecurity-focused investors, including Forgepoint Capital and Ten Eleven Ventures, the person said.
Ballistic announced its $300 million debut fund in 2022. It also raised about $130 million for a separate vehicle, Ballistic Ventures Fund A, per PitchBook data, and the new Fund B is targeting a similar amount.
U.S. cybersecurity startups raised $11.5 billion in 2025, the highest since 2022, a recent JPMorgan Chase report said, citing PitchBook data. The report said AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019. Separately, Microsoft warned in its annual Digital Defense Report, released last month, that hackers are increasingly using AI for activities ranging from phishing and social engineering to malware development, allowing attackers to operate faster and at greater scale even as many of their underlying techniques remain unchanged.
Analysis
Why This Matters
- Ballistic's $490 million target shows specialist cybersecurity funds still attract large commitments as AI reshapes the threat landscape.
- AI-enabled companies now dominate U.S. cybersecurity venture deals, making this fundraise a marker for how deeply AI has penetrated the sector.
- With Microsoft reporting that attackers use AI to operate faster and at greater scale, demand for early-stage security products appears likely to keep growing.
Background
Ballistic Ventures is a San Francisco-based venture firm founded in late 2021 by veteran cybersecurity executives and investors, including Ted Schlein, who spent more than two decades at Kleiner Perkins. The firm started with a $300 million debut fund in 2022 and a $360 million second flagship fund in 2024, backing early-stage security startups. The new fundraising arrives during a boom in cybersecurity venture investing driven by AI.
Key Perspectives
- A cybersecurity investor at another VC firm: said Ballistic's Kleiner Perkins ties set it apart from rivals, though its investment strategy resembles those of other cybersecurity-focused investors such as Forgepoint Capital and Ten Eleven Ventures.
- Microsoft: its annual Digital Defense Report warns hackers are increasingly using AI for phishing, social engineering and malware development, letting them operate faster and at greater scale.
What to Watch
- Whether the two funds begin recording sales in SEC filings, the first visible sign of investor commitments.
- Whether AI-enabled companies keep their dominant share of U.S. cybersecurity venture deals beyond the 72% reported through May.
- How the reported rise in AI-assisted attacks affects deal flow and valuations for cybersecurity startups in coming quarters.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedBallistic Ventures is seeking $490 million across two new cybersecurity funds.TechCrunch: “Ballistic Ventures, the cybersecurity-focused venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein (pictured above, second from the right), is seeking to raise $490 million across two new funds”
- SupportedSEC filings show a third flagship fund and a separate vehicle.TechCrunch: “The San Francisco-based VC firm filed with the U.S. Securities and Exchange Commission this week to raise $360 million for its third flagship fund, matching the size of its previous fund raised in 2024, and another $130 million for a separate vehicle called Ballistic Ventures Fund B.”
- SupportedGrowing AI use has raised concerns about more sophisticated cyberattacks.TechCrunch: “The fundraising plans come as the growing use of artificial intelligence has raised concerns about more sophisticated cyberattacks.”
- SupportedThe firm is seeking the $490 million according to SEC filings.TechCrunch: “is seeking to raise $490 million across two new funds, TechCrunch has learned through regulatory filings.”
- SupportedThe firm filed to raise $360 million for its third flagship fund.TechCrunch: “filed with the U.S. Securities and Exchange Commission this week to raise $360 million for its third flagship fund”
- SupportedThe $360 million target matches the size of the previous fund, raised in 2024.TechCrunch: “matching the size of its previous fund raised in 2024”
- SupportedBallistic filed to raise $130 million for a separate vehicle called Ballistic Ventures Fund B.TechCrunch: “and another $130 million for a separate vehicle called Ballistic Ventures Fund B.”
- SupportedNeither fund had recorded sales at the time of filing.TechCrunch: “Neither fund had recorded any sales at the time of filing.”
- SupportedThe rise of AI agents has created opportunities for cybersecurity startups and their backers.TechCrunch: “The rise of AI agents has also created new opportunities for cybersecurity startups and the venture capital firms backing them.”
- SupportedU.S. cybersecurity startups raised $11.5 billion in 2025, the highest amount since 2022.TechCrunch: “U.S. cybersecurity startups raised $11.5 billion in 2025, the highest since 2022, a recent report by JPMorgan Chase said, citing PitchBook data.”
- SupportedAI-enabled companies made up about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019.TechCrunch: “AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019, the report said.”
- SupportedMicrosoft warned in its annual Digital Defense Report, released last month, that hackers are increasingly using AI for activities including phishing, social engineering and malware development.TechCrunch: “Separately, Microsoft, in its annual Digital Defense Report released last month, warned that hackers are increasingly using AI for activities ranging from phishing and social engineering to malware development.”