Ballistic Ventures Seeks $490M as AI Cybersecurity Funding Surges
Ballistic Ventures seeks $490 million across two funds as AI drives cybersecurity investment, startup deals and increasingly scalable global cyberattacks.
Summary
San Francisco-based Ballistic Ventures is seeking $490 million across two funds, according to SEC filings from the week of November 3, 2026. Its third flagship fund targets $360 million, matching the second flagship raised in 2024, while Ballistic Ventures Fund B targets $130 million, similar to Fund A’s roughly $130 million. Neither new fund had recorded sales. Ballistic announced a $300 million debut fund in 2022 after its late 2021 founding and declined to discuss the new fundraising.
The founding team includes former Kleiner Perkins partner Ted Schlein, who spent more than two decades there, former AT&T Cybersecurity president Barmak Meftah, and Fortify Software and AlienVault co-founder Roger Thornton. Investments include Armadin, GetReal, Nudge Security and Oligo Security. Talon Cyber Security was acquired by Palo Alto Networks, while CrowdStrike bought Pangea. A rival cybersecurity investor said Ballistic’s Kleiner Perkins ties differentiate it, although its strategy resembles Forgepoint Capital and Ten Eleven Ventures.
U.S. cybersecurity startups raised $11.5 billion in 2025, the highest total since 2022, JPMorgan Chase found using PitchBook data. AI-enabled companies represented about 72% of U.S. cybersecurity venture deals through May 2026, up from 36% in 2019, as AI agents create security products and more capable threats. Microsoft’s October 2026 Digital Defense Report warned that attackers increasingly use AI for phishing, social engineering and malware development, increasing speed and scale despite largely unchanged underlying techniques.
Positives
- $490 million across two proposed funds could expand Ballistic Ventures’ capacity to finance cybersecurity startups.
- $11.5 billion flowed into U.S. cybersecurity startups in 2025, the sector’s highest total since 2022.
- 72% of U.S. cybersecurity venture deals through May 2026 involved AI-enabled companies, up from 36% in 2019.
- Talon Cyber Security and Pangea secured exits through acquisitions by Palo Alto Networks and CrowdStrike, respectively.
- $360 million targeted for the third flagship fund matches Ballistic Ventures’ 2024 vehicle.
Risks & concerns
- Neither the $360 million flagship fund nor the $130 million Fund B had recorded sales when filed.
- Microsoft warned that AI is increasing the speed and scale of phishing, social engineering and malware development.
- Ballistic Ventures faces specialist competition from Forgepoint Capital and Ten Eleven Ventures while pursuing a similar investment strategy.
- Ballistic Ventures declined to comment, leaving timing, investor commitments and fundraising progress undisclosed.