Ballistic Ventures seeks $490 million for new cybersecurity funds as AI demand lifts sector

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Ballistic Ventures cybersecurity funds

Highlights

Ballistic Ventures is seeking $490 million across two funds—a $360 million flagship and a $130 million Fund B—per recent SEC filings with no sales yet.
U.S. cybersecurity startups raised $11.5 billion in 2025, the highest since 2022, with AI-enabled companies representing 72% of deals through May.
Microsoft's latest Digital Defense Report highlights hackers' increasing use of AI for phishing, social engineering, and malware development, accelerating attack scale and speed.

Fundraising plan and filing details

As first reported by TechCrunch, regulatory filings show San Francisco-based Ballistic Ventures is seeking to raise the capital through two vehicles filed this week with the U.S. Securities and Exchange Commission. The firm had recorded no sales for either fund at the time of the filing, and it declines to comment on the fundraising plans.

The proposed $360 million target for the third flagship fund matches the size of Ballistic's previous flagship fund raised in 2024. A separate vehicle, Ballistic Ventures Fund B, is targeting another $130 million, in line with the roughly $130 million previously raised for Ballistic Ventures Fund A, according to PitchBook data.

Founded in late 2021, Ballistic was co-founded by former Kleiner Perkins partner Ted Schlein, former AT&T Cybersecurity president Barmak Meftah and Roger Thornton, who co-founded Fortify Software and AlienVault. The firm has backed Talon Cyber Security, later acquired by Palo Alto Networks, and Pangea, which CrowdStrike bought, alongside startups including Armadin, GetReal, Nudge Security and Oligo Security.

AI boom reshapes cybersecurity venture activity

The fundraising effort comes as AI adoption increases concern over more sophisticated cyberattacks while also creating new openings for cybersecurity startups and their investors. A cybersecurity investor at another venture firm tells TechCrunch Ballistic's long ties to Kleiner Perkins help distinguish it from rivals, even if its investment approach resembles that of other specialist firms such as Forgepoint Capital and Ten Eleven Ventures.

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

Microsoft also warns in its annual Digital Defense Report released last month that hackers are increasingly using AI for phishing, social engineering and malware development. The company says the technology allows attackers to move faster and operate at greater scale, even as many underlying techniques remain unchanged.

In our earlier article on Q3 cybersecurity funding, we noted that investor appetite stayed strong as global cybersecurity and privacy startups raised $6.8 billion, lifted by larger late-stage rounds even while overall deal counts fell. We also highlighted how AI-focused and identity-security companies attracted the bulk of capital, alongside a pickup in consolidation through major acquisitions.

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