TechCrunch: Schlein’s Ballistic Ventures Seeks $490M in Funds Amid AI-Driven Cybersecurity Boom

Two funds in the works

Ballistic Ventures filed with the U.S. Securities and Exchange Commission this week to raise $360 million for its third flagship fund and $130 million for a separate vehicle, Ballistic Ventures Fund B. The San Francisco-based firm had not recorded any sales for either fund at the time of filing.

The flagship fund would match the size of the firm’s previous fund, raised in 2024. Fund B seeks an amount similar to the roughly $130 million raised for the earlier Ballistic Ventures Fund A, according to PitchBook data.

A firm with security roots

Founded in late 2021, Ballistic Ventures was co-founded by former Kleiner Perkins partner Ted Schlein. Its founding team also includes Barmak Meftah, a former AT&T Cybersecurity president, and Roger Thornton, co-founder of Fortify Software and AlienVault.

The firm has backed Talon Cyber Security, acquired by Palo Alto Networks, and Pangea, bought by CrowdStrike. Its other portfolio companies include Armadin, GetReal, Nudge Security and Oligo Security.

A cybersecurity investor at another venture capital firm told TechCrunch that Schlein’s more-than-two-decade tenure at Kleiner Perkins helps distinguish Ballistic from competitors. The investor said its approach is otherwise similar to that of firms including Forgepoint Capital and Ten Eleven Ventures.

AI reshapes cyber risks

The growing use of artificial intelligence has heightened concerns about more sophisticated cyberattacks. AI agents have also opened new possibilities for cybersecurity startups and the investors backing them.

A JPMorgan Chase report citing PitchBook data said U.S. cybersecurity startups raised $11.5 billion in 2025, the sector’s highest amount since 2022. AI-enabled companies made up about 72% of U.S. cybersecurity venture deals through May this year, up from 36% in 2019.

Microsoft’s annual Digital Defense Report, released last month, warned that hackers increasingly use AI for phishing, social engineering and malware development. The report said the technology helps attackers move faster and operate at greater scale, while many of their underlying methods remain unchanged.

Previous fundraising record

Ballistic announced its $300 million debut fund in 2022. Two years later, it raised $360 million for its second flagship fund and also gathered about $130 million for Fund A, according to PitchBook data.

The new fundraising effort would bring the combined targets for the two proposed vehicles to $490 million. The filings show that neither fund had reported sales when the documents were submitted.