Ballistic Ventures Seeks $490M for AI Cybersecurity Funds

Executive Overview

Ballistic Ventures, a San Francisco-based venture capital firm specializing in cybersecurity, has filed with the U.S. Securities and Exchange Commission (SEC) to raise $490 million across two new funds: $360 million for its third flagship fund and $130 million for Ballistic Ventures Fund B. The move comes as U.S. cybersecurity startup funding reached $11.5 billion in 2025, with AI-powered companies accounting for 72% of deals through May 2025. The filing underscores growing investor confidence in AI-driven security solutions amid escalating cyber threats, as highlighted by the Microsoft Digital Defense Report.

Deep-Dive Features & Architecture

Ballistic Ventures was founded in late 2021 by Ted Schlein, a former partner at Kleiner Perkins for over two decades, along with Barmak Meftah (former president of AT&T Cybersecurity) and Roger Thornton (co-founder of Fortify Software and AlienVault). The firm's portfolio includes companies acquired by major entities, such as Talon Cyber Security (acquired by Palo Alto Networks) and Pangea (acquired by CrowdStrike), as well as startups like Armadin, GetReal, Nudge Security, and Oligo Security. Its association with Kleiner Perkins differentiates it from competitors, though its investment strategy is similar to other specialized funds like Forgepoint Capital and Ten Eleven Ventures.

Historically, the firm announced its first fund of $300 million in 2022, then raised $360 million for its second fund in 2024, and approximately $130 million for a separate fund called Ballistic Ventures Fund A, according to PitchBook data. The new Fund B targets a similar amount. Neither of the new funds has recorded any sales at the time of filing, and the firm declined to comment on fundraising plans.

This move comes amid a radical shift in the cybersecurity sector: according to a J.P. Morgan report based on PitchBook, U.S. cybersecurity startup funding reached $11.5 billion in 2025, the highest level since 2022. More importantly, AI-powered companies captured about 72% of venture capital deals in the sector through May 2025, compared to just 36% in 2019, reflecting a redirection of capital toward AI-based security solutions.

Benchmark & Competitive Performance

In terms of fund size, the targeted third fund ($360 million) matches the second fund raised in 2024 and is double the size of the first fund ($300 million in 2022). Compared to other specialized cybersecurity funds like Forgepoint Capital and Ten Eleven Ventures, Ballistic maintains a consistent fund size that reflects investor confidence despite market fluctuations. On a broader market level, the 72% share of AI-powered deals in 2025 represents a 36 percentage point increase from 2019, positioning Ballistic at the forefront of this AI-driven investment wave.

Industry Impact & Enterprise Adoption

The surge in AI-powered cybersecurity deals signals a fundamental shift in how enterprises approach security. As the Microsoft Digital Defense Report 2026 warns, attackers are increasingly leveraging AI to conduct phishing, social engineering, and malware development at greater speed and scale. This evolving threat landscape is driving demand for AI-enhanced security solutions, and Ballistic Ventures is positioning itself to capitalize on this trend by raising substantial capital to back innovative startups. The firm's consistent fund sizes and successful exits demonstrate its ability to identify and nurture high-potential companies in the cybersecurity space.

Conclusion

Ballistic Ventures' $490 million fundraising effort underscores the robust investor appetite for AI-driven cybersecurity solutions. With U.S. cybersecurity funding at an all-time high and AI deals dominating the landscape, the firm is well-positioned to continue its trajectory of backing disruptive security startups. As cyber threats grow more sophisticated, the role of AI in defense will only become more critical, and Ballistic Ventures is poised to be a key player in shaping the future of the industry.

Media Source: TechCrunch AI | Official Company Statement: Original Source | Fact Verification & Analysis: AI Tools Oasis