Ballistic Ventures, a cybersecurity-focused venture capital firm co-founded by former Kleiner Perkins partner Ted Schlein (pictured above, second from right), is aiming to raise $490 million in two new funds, TechCrunch has learned through regulatory filings.
The San Francisco-based VC firm filed with the U.S. Securities and Exchange Commission this week to raise $360 million for its third flagship fund, matching the size of its previous fund raised in 2024, and another $130 million for a separate entity called Ballistic Ventures Fund B. Neither fund was recording sales at the time of filing.
The funding plan comes amid growing concerns about more sophisticated cyber-attacks due to the growing use of artificial intelligence. The rise of AI agents is also creating new opportunities for cybersecurity startups and the venture capital firms that back them.
Founded in late 2021, Ballistic Ventures’ founding team includes Schlein, former AT&T cybersecurity president Balmak Mehta, and Roger Thornton, who co-founded security companies Fortify Software and AlienVault. The company has backed companies such as Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was acquired by CrowdStrike, along with startups such as Armadin, GetReal, Nudge Security, and Oligo Security.
A cybersecurity investor at another venture capital firm told TechCrunch that Ballistic’s ties to Kleiner Perkins, the storied venture capital firm where Schlein worked for more than 20 years, help differentiate it from its competitors. But the company’s investment strategy is similar to that of other cybersecurity-focused investors, including ForgePoint Capital and Ten Eleven Ventures, the people said.
In 2022, Ballistic announced its $300 million debut fund, and two years later raised an additional $360 million for its second flagship fund. It also raised about $130 million for another entity called Ballistic Ventures Fund A, according to PitchBook data. The new Fund B is targeting a similar amount.
U.S. cybersecurity startups raised $11.5 billion in 2025, the most since 2022, according to a recent JPMorgan Chase report citing data from Pitchbook. AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May of this year, compared to 36% in 2019, according to the report.
Separately, Microsoft warned in its annual Digital Defense Report released last month that hackers are increasingly using AI for activities ranging from phishing and social engineering to malware development. This technology allows attackers to operate faster and at greater scale, even though many of the underlying techniques remain the same.
Ballistic Ventures declined to comment on its funding plans.
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