Ballistic Ventures Targets $490M Across Two New Cybersecurity Funds

San Francisco-based Ballistic Ventures is attempting to assemble $490 million across two new funds, according to SEC regulatory filings reported by TechCrunch. The cybersecurity-focused firm is targeting $360 million for its third flagship vehicle, Ballistic Ventures Fund III, while simultaneously raising $130 million for a secondary vehicle named Ballistic Ventures Fund B. Neither vehicle had closed capital at the time of the filings.

The target sizes precisely duplicate Ballistic’s previous fundraising vintage from 2024, when the firm closed a $360 million second flagship fund alongside a $130 million companion vehicle designated as Fund A, according to PitchBook figures cited by TechCrunch. Ballistic initially announced its debut fund of $300 million in 2022. Ballistic declined to comment on the new filings.

Co-founded by former Kleiner Perkins partner Ted Schlein, ex-AT&T Cybersecurity president Barmak Meftah, and security entrepreneur Roger Thornton—who co-founded security companies Fortify Software and AlienVault—Ballistic has carved out a specialized thesis in early-stage security. Peer investors note that while Ballistic's sector-focused approach mirrors competitors like Forgepoint Capital and Ten Eleven Ventures, Schlein’s multi-decade pedigree at Kleiner Perkins provides distinct deal-sourcing leverage.

Ballistic’s portfolio moves reflect a market undergoing rapid strategic consolidation. The firm previously backed Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which sold to CrowdStrike. Its active portfolio includes early-to-growth stage bets on Armadin, GetReal, Nudge Security, and Oligo Security. The fundraising plans come as the growing use of artificial intelligence raises concerns about sophisticated cyberattacks, while the rise of AI agents creates new opportunities for startups and the VC firms backing them.

The fundraising push lands amid a sharp resurgence in sector dealmaking driven by artificial intelligence vulnerabilities. Citing JPMorgan Chase and PitchBook data, TechCrunch reported that U.S. cybersecurity startups captured $11.5 billion in funding in 2025—the sector's highest total since 2022. Furthermore, AI-enabled security companies accounted for about 72% of U.S. cybersecurity venture transactions through May this year, compared with 36% in 2019. Separately, Microsoft warned in its annual Digital Defense Report released last month that hackers are increasingly using AI for phishing, social engineering, and malware development, enabling attackers to operate faster and at greater scale.