Cybersecurity-focused venture capital firm Ballistic Ventures is seeking to raise $490 million across two new funds, according to regulatory filings reported by TechCrunch. The San Francisco-based firm filed with the U.S. Securities and Exchange Commission to secure $360 million for its third flagship fund, matching the size of its previous fund raised in 2024, alongside another $130 million for a separate vehicle named Ballistic Ventures Fund B. Neither fund had recorded any sales at the time of the filings, and Ballistic Ventures declined to comment on its fundraising plans.
Background and Leadership
Founded in late 2021, Ballistic Ventures is dedicated exclusively to funding and incubating early-stage cybersecurity startups. The firm was established by a founding team that includes former Kleiner Perkins partner Ted Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who co-founded Fortify Software and AlienVault. Other partners and leaders associated with the firm include Jake Seid, Derek Smith, Kevin Mandia, Michelle Kincaid, and Agnes So. Since its inception, the firm has backed companies such as Talon Cyber Security (acquired by Palo Alto Networks) and Pangea (acquired by CrowdStrike), alongside startups like Armadin, GetReal, Nudge Security, Oligo Security, Concentric AI, and Veza.
The AI-Driven Cybersecurity Boom
The firm's new fundraising efforts arrive during a period of heightened activity driven by artificial intelligence. According to TechCrunch, the growing use of artificial intelligence has heightened concerns regarding more sophisticated cyberattacks, while the rise of AI agents has simultaneously generated new opportunities for cybersecurity startups and their venture capital backers. Market data cited in a JPMorgan Chase report indicates that U.S. cybersecurity startups raised $11.5 billion in 2025, marking the highest total since 2022. Furthermore, AI-enabled companies accounted for roughly 72% of U.S. cybersecurity venture deals through May of that year, up from 36% in 2019. Additionally, Microsoft warned in its annual Digital Defense Report that hackers are increasingly leveraging AI for malware development, phishing, and social engineering to operate faster and at a greater scale.