Ballistic Ventures Seeks $490 Million as AI Supercharges Cybersecurity Demand

Ballistic Ventures has filed with the U.S. Securities and Exchange Commission to raise $490 million across two new cybersecurity funds, a move that shows the firm is leaning into the same security thesis just as artificial intelligence is reshaping both attacks and investor appetite. The fundraising push, reported this week by TechCrunch and set against broader coverage from El Ecosistema Startup, includes a $360 million third flagship fund and a separate $130 million vehicle.

The filing matters because it arrives at a moment when cybersecurity venture capital is drawing unusually strong capital and AI is amplifying the threats startups are trying to stop. It also gives a rare look at how a specialist investor with deep industry roots is positioning itself for the next phase of cyber spending.

What Ballistic filed to raise

According to TechCrunch, Ballistic submitted two SEC fundraising filings this week: one targeting $360 million for what would be its third flagship fund, and another seeking $130 million for Ballistic Ventures Fund B. Neither fund had recorded sales at the time of filing, which is normal for a private fund that is still in the fundraising phase.

The combined target comes to $490 million. That total is close in spirit to Ballistic’s earlier pace: the firm announced a $300 million debut fund in 2022 and raised a $360 million second flagship fund in 2024, according to the report.

Why the SEC filing matters

An SEC filing does not mean the money is already in hand. It does, however, reveal the size of the target and signals that the firm has started the formal process of gathering commitments from limited partners. In private markets, those filings are often the first public clue that a fundraise is underway.

Ballistic declined to comment on the fundraising, TechCrunch said.

Who is Ballistic Ventures?

Ballistic Ventures was founded in late 2021 by Ted Schlein, a former Kleiner Perkins partner, along with Barmak Meftah and Roger Thornton. The firm has built its identity around cybersecurity investing, a niche that remains attractive to venture backers because software budgets, threat levels and regulatory pressure all keep rising at once.

TechCrunch noted that Ballistic’s Kleiner Perkins connection helps distinguish it from many rivals in a crowded market. A source cited by the outlet also said the firm’s strategy resembles that of established cyber investors such as Forgepoint Capital and Ten Eleven Ventures.

How the firm has grown so far

Ballistic’s fundraising trajectory has been unusually quick for a new specialist firm. It launched with a $300 million debut fund in 2022, then raised a $360 million second flagship fund in 2024. The latest filings suggest the firm is attempting to preserve that same scale even as the cybersecurity market gets more competitive.

Why it matters

The new fundraising push lands at a time when cybersecurity is one of the clearest beneficiaries of the AI boom. More AI tools are entering enterprise workflows, but the same technology is also giving attackers new capabilities and creating fresh security gaps for companies to close.

That combination is drawing capital. TechCrunch reported that U.S. cybersecurity startups raised $11.5 billion in 2025, the highest level since 2022. The article also pointed to a JPMorgan Chase report showing that AI-enabled firms made up about 72% of U.S. cybersecurity venture deals through May, compared with 36% in 2019.

For investors, that shift has two effects. First, it expands the set of companies that can attract funding if they are positioned as AI-native security tools. Second, it raises the bar for differentiation, because many startups now claim some relationship to AI and cyber defense.

What the market signals right now

• Cybersecurity remains a fundable category even as venture capital remains selective elsewhere.
• AI-related security startups are capturing a growing share of deal activity.
• Specialist firms with deep cyber networks may have an edge in sourcing and diligence.
• Large fund sizes suggest investors still expect sizable follow-on rounds and exits in the sector.

How AI changed the cyber pitch

AI has not just made cybersecurity more important; it has changed the shape of the problem. According to Microsoft’s latest Digital Defense Report, hackers are increasingly using AI for activities ranging from phishing and social engineering to malware development. That warning gives context to why security investors are still willing to write large checks.

Cybersecurity venture funds typically back startups that defend against hacking, phishing, identity abuse and malware. In an AI-heavy environment, those categories have expanded rather than shrunk. Attackers can automate more of the reconnaissance and personalization that make scams effective, while defenders are trying to use the same technology to detect anomalies, block malicious behavior and reduce the cost of response.

AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May this year, compared with 36% in 2019.

That JPMorgan Chase figure, cited by TechCrunch, captures the pace of the shift. It suggests the market is no longer treating AI as a side theme in cyber investing. It is increasingly the center of the thesis.

What is in Ballistic’s portfolio?

Ballistic has already backed a set of companies that fit its cybersecurity focus. TechCrunch said the firm’s portfolio includes exits such as Talon Cyber Security and Pangea, along with current bets including Armadin, GetReal, Nudge Security and Oligo Security.

That mix matters because it shows the firm is not simply financing one narrow product category. Its portfolio spans a range of security use cases, from enterprise protections to broader identity and infrastructure concerns. The list also suggests Ballistic is continuing to place bets in areas where AI could both increase risk and create demand for new tools.

Selected Ballistic investments and exits

• Talon Cyber Security — listed by TechCrunch as a portfolio exit.
• Pangea — listed by TechCrunch as a portfolio exit.
• Armadin — current portfolio company.
• GetReal — current portfolio company.
• Nudge Security — current portfolio company.
• Oligo Security — current portfolio company.

Background: how the cybersecurity market got here

The cybersecurity venture market has long been cyclical, but AI has accelerated the cycle’s upward pressure. A few years ago, investors were focused on cloud security, identity protection and zero-trust architectures. Now they are layering in concerns about AI-generated phishing, faster malware creation, deepfake-enabled fraud and the security of AI systems themselves.

That helps explain why the sector keeps drawing capital even as the broader venture market remains more cautious. Security spending is often tied to risk rather than exuberance. When threats rise, budgets tend to hold up. When AI makes those threats more scalable, specialist funds can argue that demand will not fade quickly.

Ballistic’s move also fits a familiar pattern in venture: the strongest niche firms often raise larger follow-on funds once they establish a track record. In this case, the timing is notable because the firm is still relatively young, having been founded only in late 2021. Its rapid succession of funds suggests investors have been willing to support the thesis quickly.

How Ballistic compares with peers

TechCrunch said a source sees Ballistic’s strategy as similar to that of Forgepoint Capital and Ten Eleven Ventures, two established cybersecurity investors. That comparison places Ballistic in a class of firms that are not generalist venture funds dabbling in security, but specialists built around deep domain networks and technical credibility.

The firm’s Kleiner Perkins lineage may help in that positioning. Schlein’s background likely matters not just as a brand signal, but as evidence that the team can recruit founders, co-investors and later-stage backers in a market where trust matters.

Why specialist investors still have an edge

Cybersecurity founders often need more than capital. They need customer access, procurement insight, technical validation and help navigating a market where enterprise sales cycles can be long. Specialist investors can provide those connections more effectively than broad-based venture firms that lack a security bench.

That is one reason Ballistic’s latest filing is more than a routine fundraise. It is a vote of confidence in a model that says deep expertise still matters, even as AI broadens the field of potential cyber startups.

What happens next

The immediate question is whether Ballistic can close the two funds at their target sizes, and how quickly. The filing does not identify which limited partners may back the vehicles, and the firm has not said whether it expects to alter its investing pace or focus.

Another open question is whether Ballistic will use the new capital to lean harder into AI-security opportunities, or whether it will simply keep backing the same categories it already knows well. The answer will shape how the market interprets the fundraise: as continuity, or as a strategic adjustment to a new threat environment.

Investors will also watch for whether the new funds lead to more breakout exits. That matters because Ballistic’s portfolio already includes exits, but a larger fund size creates a higher bar for returns and for follow-on deployment in later-stage rounds.

What to watch in the months ahead

1. Whether Ballistic announces final closes for the $360 million and $130 million funds.
2. Whether the firm increases its exposure to AI-native security startups.
3. Whether the broader U.S. cyber funding total stays near 2025’s pace.
4. Whether more specialist firms follow with similarly sized fundraising pushes.

The broader read-through for readers and the market

For readers outside venture capital, the story is a reminder that cyber risk is now tightly linked to the AI boom. The same technology that powers productivity tools and new products is also widening the attack surface for companies, governments and consumers. That reality is making cybersecurity not just a compliance expense, but a growth category for investors.

For the market, Ballistic’s filing is a sign that specialized capital remains available for security startups with a credible angle on AI-era threats. The firm is effectively betting that the market will keep rewarding founders who can sell defense tools against a threat landscape that is becoming more automated, more personalized and harder to police.

And for Ballistic itself, the message is straightforward: it wants to keep scaling the same cyber thesis, at roughly the same size, while the sector’s relevance only increases.