Ballistic Ventures seeks $490 million for AI cybersecurity funds

New capital for cyber defense

Ballistic Ventures is currently seeking to raise a total of $490 million to fuel its investments in the cybersecurity sector. According to regulatory filings obtained by TechCrunch, the San Francisco-based firm is splitting this capital into two distinct vehicles. One is a $360 million flagship fund, while the other is a $130 million fund designated as Ballistic Ventures Fund B.

These new funds come at a time when the cybersecurity landscape is shifting rapidly due to the integration of artificial intelligence. The firm aims to provide capital to startups that can navigate the complexities of modern digital threats. While neither fund had recorded any sales at the time of the filing, the move signals a significant bet on the future of the industry.

The firm has a history of raising large sums to support its investment thesis. In 2022, Ballistic Ventures announced its debut $300 million fund, followed by a $360 million second flagship fund in 2024. The new fundraising efforts represent a continuation of this aggressive growth strategy in a high-demand market.

The rise of AI-driven threats

The primary driver behind this new fundraising push is the increasing sophistication of cyberattacks powered by artificial intelligence. As AI becomes more accessible, hackers are finding ways to automate and scale their operations. This has created a dual environment where both the threat and the defense are becoming more technologically advanced.

Microsoft recently released its annual Digital Defense Report, which highlighted how attackers are leveraging AI for various malicious activities. These include phishing, social engineering, and the development of malware. The technology allows these bad actors to operate at a much faster pace and on a larger scale than was previously possible.

Despite these advancements in speed and scale, many of the underlying techniques used by hackers remain largely unchanged. The primary difference is the efficiency with which they can execute their goals. This creates a pressing need for security companies to develop AI-enabled tools that can keep up with these automated threats.

A shift in venture investment

The investment data shows a clear trend toward AI-centric security solutions. A report from JPMorgan Chase, citing PitchBook data, revealed that AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year. This is a sharp increase from 2019, when that figure stood at only 36%.

This shift indicates that venture capitalists are prioritizing companies that can use machine learning and automation to protect data. The total amount of capital flowing into U.S. cybersecurity startups reached $11.5 billion in 2025, which is the highest level seen since 2022. Investors are clearly looking for ways to stay ahead of the curve as AI becomes a standard component of the tech stack.

Ballistic Ventures is positioning itself as a key player in this trend by leveraging its deep industry ties. The firm was founded in late 2021 by a team with significant experience in the security space. Their goal is to identify the next generation of startups that can defend against the very technologies that are making the internet more complex.

The team behind the funds

Ballistic Ventures is led by a founding team with deep roots in both venture capital and cybersecurity leadership. Ted Schlein, a former partner at the storied firm Kleiner Perkins, spent more than two decades there before helping launch Ballistic. His background provides the firm with a level of prestige and network that distinguishes it from other cybersecurity-focused investors.

Joining Schlein are Barmak Meftah, who previously served as the president of AT&T Cybersecurity, and Roger Thornton. Thornton is well-known for co-founding security companies such as Fortify Software and AlienVault. This combination of high-level corporate leadership and startup experience allows the firm to vet companies with a nuanced understanding of the market.

The firm has already built a track record of backing successful security companies. Their portfolio includes Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was bought by CrowdStrike. They also hold stakes in several other startups, including Armadin, GetReal, Nudge Security, and Oligo Security.

What comes next for the market

As Ballistic Ventures seeks to finalize its new funds, the broader cybersecurity market will likely see a surge in AI-focused startups. The goal for these new companies will be to create