Ted Schlein’s Ballistic Ventures Aims to Raise $490 Million for New Funds Amid AI-Powered Cybersecurity Surge
Ballistic Ventures, a venture capital firm that focuses on cybersecurity and was established by former Kleiner Perkins partner Ted Schlein, is planning to raise $490 million through two new funds, according to regulatory submissions.
The San Francisco-based firm submitted a filing to the U.S. Securities and Exchange Commission this week to gather $360 million for its third primary fund, which equals the size of its previous fund raised in 2024, in addition to $130 million for a separate initiative known as Ballistic Ventures Fund B. At the time of the filing, neither fund had reported any sales.
This fundraising effort coincides with increasing worries surrounding sophisticated cyber threats fueled by the rising use of artificial intelligence. Simultaneously, the emergence of AI tools presents fresh opportunities for cybersecurity startups and the venture capitalists investing in them.
Established in late 2021, the founding members of Ballistic Ventures include Schlein, ex-AT&T Cybersecurity president Barmak Meftah, and Roger Thornton, who has co-founded security firms such as Fortify Software and AlienVault. The firm has invested in companies like Talon Cyber Security, which was acquired by Palo Alto Networks, as well as Pangea, purchased by CrowdStrike, alongside emerging startups such as Armadin, GetReal, Nudge Security, and Oligo Security.
Ballistic’s connection to the prominent venture capital firm Kleiner Perkins, where Schlein worked for over two decades, distinguishes it from its competitors, as noted by a cybersecurity investor from another firm. Nonetheless, its investment approach aligns with that of other firms focusing on cybersecurity, such as Forgepoint Capital and Ten Eleven Ventures, according to the source.
In 2022, Ballistic launched its $300 million initial fund and subsequently secured another $360 million for its second primary fund two years later. Moreover, it raised approximately $130 million for another initiative, Ballistic Ventures Fund A, according to PitchBook data. The new Fund B aims for a comparable amount.
Cybersecurity startups in the U.S. raised $11.5 billion in 2025, marking the highest level since 2022, as per a recent analysis by JPMorgan Chase which cited PitchBook data. AI-enabled enterprises constituted around 72% of U.S. cybersecurity venture deals through May of this year, a significant increase from 36% in 2019, the report indicated.
In a related note, Microsoft, in its recent annual Digital Defense Report, expressed concerns that hackers are progressively adopting AI for various malicious activities, including phishing, social engineering, and malware creation. This technology enables attackers to operate more swiftly and on a larger scale, even as many traditional methods remain unchanged.
Ballistic Ventures opted not to comment on its fundraising objectives.
