Ballistic Ventures Targets $490 Million Across Two New Funds
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 regulatory filings. The San Francisco-based venture capital firm filed documents with the U.S. Securities and Exchange Commission to secure $360 million for its third flagship fund. This matches the exact size of its previous fund raised in 2024. Additionally, the firm aims to collect $130 million for a separate vehicle designated as Ballistic Ventures Fund B. Neither of the newly proposed funds had recorded any sales at the time of the regulatory filings.
This aggressive fundraising push occurs as the widespread adoption of artificial intelligence introduces complex challenges and elevated risks across digital networks. Security leaders and enterprise executives face mounting pressure to protect critical infrastructure from advanced automated threats. Venture capital firms specializing in defense technologies and digital protection are positioning themselves to capitalize on this shifting technological landscape. Ballistic Ventures declined to comment on its ongoing fundraising plans.
The Rise of AI-Driven Cyberattacks and Security Opportunities
The latest capital-raising initiative directly responds to an environment where the growing use of artificial intelligence raises concerns about more sophisticated cyberattacks. Malicious actors now deploy automated systems and intelligent agents to probe corporate networks, exploit software vulnerabilities, and bypass traditional perimeter defenses. Conversely, the rise of artificial intelligence agents also creates lucrative new opportunities for cybersecurity startups and the specialized venture capital firms backing them. Innovators are developing intelligent defense mechanisms capable of detecting and neutralizing threats at machine speed.
Independent industry reports highlight the expanding scale of these digital threats. Microsoft, in its annual Digital Defense Report released last month, warned that hackers are increasingly using artificial intelligence for activities ranging from phishing and social engineering to malware development. The technology allows attackers to operate much faster and at a significantly greater scale, even as many of their underlying techniques remain fundamentally unchanged. Security software providers must evolve rapidly to counteract these persistent and automated intrusions.
Venture Capital Investment Trends in Cybersecurity
Investment activity within the digital defense sector has rebounded significantly. United States cybersecurity startups raised $11.5 billion in 2025, representing the highest annual total since 2022, according to a recent report by JPMorgan Chase citing PitchBook data. This influx of capital demonstrates sustained investor confidence in the resilience and necessity of security software. Startups that successfully integrate artificial intelligence into their defense architectures command the lion's share of this institutional funding.
Artificial intelligence-enabled companies accounted for about 72% of United States cybersecurity venture deals through May this year. This represents a dramatic expansion compared to 2019, when AI-focused deals comprised only 36% of the market, according to the JPMorgan Chase report. Venture capitalists view intelligent automation not merely as a feature, but as the foundational architecture for the next generation of enterprise security tools. This macro trend explains the urgency behind large fundraises by specialized venture capital institutions.
Origins and Investment History of Ballistic Ventures
Founded in late 2021, Ballistic Ventures established itself quickly within the specialized security investment community. The firm's founding team includes Ted Schlein, former AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who co-founded security companies Fortify Software and AlienVault. The firm leverages decades of operational and investment experience to identify early-stage innovators before they achieve mainstream recognition. Their portfolio includes prominent exits, such as Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was bought by CrowdStrike. Other current portfolio startups include Armadin, GetReal, Nudge Security, and Oligo Security.
The firm's historical fundraising trajectory reflects rapid growth and institutional backing. In 2022, Ballistic announced its $300 million debut fund. Two years later, the firm raised another $360 million for its second flagship fund. Alongside its flagship vehicles, the firm previously raised about $130 million for a separate vehicle called Ballistic Ventures Fund A, according to PitchBook data. The newly filed Fund B targets a similar financial commitment, mirroring the structure of its predecessor.
Market Positioning and Competitive Landscape
Ballistic Ventures occupies a distinct niche within the enterprise technology investment ecosystem. According to a cybersecurity investor at another venture capital firm, the firm's deep ties to storied venture capital firm Kleiner Perkins, where Ted Schlein spent more than two decades, help set it apart from rivals. These historical relationships provide access to proprietary deal flow and deep networks of engineering talent. However, the investor noted that the firm's overarching investment strategy remains similar to those of other cybersecurity-focused investors, including Forgepoint Capital and Ten Eleven Ventures.
Competition for high-growth security startups remains intense as institutional investors vie for allocation in promising early-stage rounds. Specialized venture capital firms must demonstrate deep domain expertise and operational support to win competitive deals against generalist venture funds. By maintaining an exclusive focus on digital defense, Ballistic Ventures positions itself as a strategic partner for technical founders building complex enterprise infrastructure. The close of its third flagship fund and Fund B will provide the dry powder necessary to maintain this active investment pace over the coming years.
