Announced 3 Nov 2026 · Sources checked
What are Ballistic Ventures' fundraising plans?
Ballistic Ventures, the San Francisco-based cybersecurity VC co-founded by former Kleiner Perkins partner Ted Schlein, filed with the US Securities and Exchange Commission this week to raise $360 million for its third flagship fund and $130 million for a separate vehicle called Ballistic Ventures Fund B, TechCrunch reported on November 3. Neither fund had recorded any sales at the time of filing.
The new funds match the sizes Ballistic raised in 2024, when it closed its second flagship fund at $360 million and a parallel vehicle, Fund A, at about $130 million. The firm's debut fund raised $300 million in 2022. The filing signals sustained investor appetite for cybersecurity-specific venture capital, even as broader tech valuations remain under scrutiny.
Ballistic Ventures declined to comment on its fundraising plans, TechCrunch reported.
Why is AI reshaping cybersecurity venture capital?
The fundraising plans come as the growing use of artificial intelligence has raised concerns about more sophisticated cyberattacks, and the rise of AI agents has created new opportunities for cybersecurity startups and the venture capital firms backing them. The duality of AI in cybersecurity — both a threat enabler and a defense accelerator — has made it the dominant theme in security investing.
US cybersecurity startups raised $11.5 billion in 2025, the highest since 2022, according to a JPMorgan report citing PitchBook data cited by TechCrunch. AI-enabled companies accounted for about 72% of US cybersecurity venture deals through May 2026, compared with 36% in 2019, the report said. That more than doubles the AI share of security deals in just over six years and explains why specialist firms like Ballistic are going back to market for fresh capital.
Microsoft, in its annual Digital Defense Report released in October 2026, warned that hackers are increasingly using AI for activities ranging from phishing and social engineering to malware development. The technology allows attackers to operate faster and at greater scale, even as many of their underlying techniques remain unchanged. The report found that AI-generated phishing lures are now more convincing and harder to distinguish from legitimate communications, while AI-assisted vulnerability discovery has accelerated the pace of zero-day exploits.
For venture investors, this creates a dual opportunity. Startups building AI-powered defense tools are positioned to address an expanding market, while the broader AI boom is also producing more security startups overall. The result is a concentrated wave of AI-security deals that shows no signs of slowing.
Who is behind Ballistic Ventures?
Ballistic Ventures was founded in late 2021 by a team including Ted Schlein, who spent more than two decades at Kleiner Perkins; former AT&T Cybersecurity president Barmak Meftah; and Roger Thornton, who co-founded security companies Fortify Software and AlienVault. The firm's ties to Kleiner Perkins help set it apart from rivals, a cybersecurity investor at another VC firm told TechCrunch.
Ballistic has backed companies including Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, bought by CrowdStrike, alongside startups such as Armadin, GetReal, Nudge Security, and Oligo Security. The firm's investments span cloud security, identity, supply chain defense, and behavioral security — categories that align closely with the AI-driven threat landscape that Microsoft's report highlights.
What does this mean for the cybersecurity market?
The cybersecurity funding landscape has shifted dramatically toward AI-focused companies. According to a JPMorgan report citing PitchBook data, US cybersecurity startups raised $11.5 billion in 2025, the highest annual total since 2022. AI-enabled companies accounted for approximately 72% of US cybersecurity venture deals through May 2026, compared with just 36% in 2019.
The shift reflects a market reality: attackers are adopting AI at a rapid pace, and defensive tools must keep up. For venture investors, this creates a concentrated wave of AI-security deals that shows no signs of slowing. Ballistic's $490 million target signals that institutional investors remain confident in cybersecurity as an asset class, even as broader venture fundraising has cooled in other sectors.
Ballistic's investment strategy is similar to other cybersecurity-focused investors including Forgepoint Capital and Ten Eleven Ventures, but its founding team's track record and Kleiner Perkins connections give it a distinct position in a market where specialized knowledge of security technology is increasingly valued by limited partners.
Common questions
How does Ballistic Ventures compare to other cybersecurity VCs?
Ballistic's investment strategy is similar to other cybersecurity-focused investors including Forgepoint Capital and Ten Eleven Ventures, but its founding team's ties to Kleiner Perkins — where Schlein spent over two decades — help distinguish it, according to an investor who spoke to TechCrunch.
What is the state of cybersecurity venture funding?
US cybersecurity startups raised $11.5 billion in 2025, the highest annual total since 2022, per PitchBook data cited by JPMorgan. AI-enabled companies now account for the majority of deals, reflecting the market's shift toward AI-driven security products.
Sources & further reading
How this story was made
Written by Kristian Kostov with AI assistance and checked against the linked sources. Company performance claims are attributed to the company. Analysis reflects AiLookout’s interpretation; we have not independently tested the products discussed. The cover is an AI-generated editorial illustration, not a photograph or evidence of an actual event.
Our editorial standards
