Ballistic Ventures: $490 Million Fundraising Target For Two New Cybersecurity Funds Amid AI Security Boom - Pulse 2.0

Ballistic Ventures, a San Francisco-based venture capital firm specializing in cybersecurity investments, is seeking to raise $490 million across two new investment funds as artificial intelligence drives demand for technologies that protect businesses against increasingly sophisticated cyber threats. According to regulatory filings, the firm has targeted $360 million for its third flagship fund and an additional $130 million for a separate investment vehicle called Ballistic Ventures Fund B.

The regulatory filings indicate that neither fund had recorded any capital sales at the time of submission, meaning the amounts represent fundraising targets rather than completed capital commitments. The proposed fundraising follows Ballistic Ventures' earlier investment vehicles, including a $300 million inaugural fund announced in 2022 and a $360 million second flagship fund raised in 2024.

The firm also previously raised approximately $130 million for a separate vehicle called Ballistic Ventures Fund A, according to PitchBook data. The new fundraising initiative would provide additional capital for investments in cybersecurity companies developing technologies for AI security, enterprise protection, and emerging digital threats.

Industry Veterans Lead Ballistic

Ballistic Ventures was founded in late 2021 by a team of experienced cybersecurity executives and investors. Its founding team includes Ted Schlein, a former partner at Kleiner Perkins, where he spent more than two decades investing in technology companies. Other founders include Barmak Meftah, former President of AT&T Cybersecurity, and Roger Thornton, who co-founded cybersecurity companies Fortify Software and AlienVault.

The firm's leadership brings experience in cybersecurity company development, enterprise software, and venture capital investing.

Ballistic Ventures focuses specifically on cybersecurity, differentiating its investment strategy from firms pursuing opportunities across multiple technology categories. Its approach emphasizes identifying companies developing technologies designed to address evolving security challenges.

AI Reshapes Cybersecurity Landscape

The fundraising plans come as artificial intelligence reshapes both cybersecurity threats and defensive technologies. AI applications can help businesses automate workflows and improve operational efficiency, but they can also create new vulnerabilities. The growing deployment of autonomous AI agents introduces additional security considerations because these systems may interact with sensitive information, enterprise applications, and external services.

Organizations are increasingly evaluating security technologies that can monitor AI activity, control access to critical systems, and protect proprietary information. At the same time, attackers are using AI to increase the speed and scale of malicious activities. Microsoft's October 2026 Digital Defense Report warned that cybercriminals are increasingly using AI for phishing, social engineering, and malware development.

These developments are creating opportunities for cybersecurity startups developing new defensive technologies. According to a JPMorgan Chase report citing PitchBook data, U.S. cybersecurity startups raised approximately $11.5 billion in 2025, representing the industry's highest annual fundraising total since 2022. Through May 2026, AI-enabled businesses accounted for approximately 72% of U.S. cybersecurity venture deals, compared with 36% in 2019.

Competing in Specialized Market

Ballistic Ventures operates alongside other investment firms specializing in cybersecurity, including Forgepoint Capital and Ten Eleven Ventures. According to TechCrunch, Ballistic's connection to Kleiner Perkins through Schlein provides an established venture capital background that may distinguish the firm from competitors.

The proposed $490 million fundraising initiative would expand the firm's available investment capital if successfully completed. The $360 million third flagship fund would match the size of Ballistic Ventures' previous flagship vehicle, while the additional $130 million Fund B would represent a separate investment pool comparable in size to the firm's earlier Fund A.

Ballistic Ventures declined to comment on the fundraising plans when contacted by TechCrunch. As companies increase spending on AI infrastructure and cybersecurity, Ballistic Ventures is seeking to expand its investment platform to support the next generation of security technology businesses.