Ted Schlein’s Ballistic Ventures seeks $490M for new funds amid AI-driven cybersecurity boom

Introduction

Ballistic Ventures, the San Francisco‑based venture firm that focuses exclusively on cybersecurity, is seeking to raise $490 million across two new vehicles. The capital raise comes at a time when artificial intelligence is reshaping both the threat landscape and the market for security solutions, prompting investors to double down on the sector.

Why the Fundraise Matters

The firm filed regulatory paperwork to launch a $360 million flagship fund—matching the size of its 2024 vehicle—and a $130 million secondary fund (Ballistic Ventures Fund B). While neither fund has reported any capital commitments yet, the timing aligns with a pronounced uptick in AI‑enabled cyber threats. Industry reports show that AI‑related startups accounted for roughly 72 % of U.S. cybersecurity venture deals through May 2026, up from 36 % in 2019. This shift signals both heightened risk and expanding opportunity for innovators that can defend against AI‑powered attacks.

Ballistic’s Track Record and Strategy

Founded in late 2021, Ballistic Ventures brings together veteran investors:

• Ted Schlein, former Kleiner Perkins partner with two decades of VC experience.
• Barmak Meftah, ex‑AT&T Cybersecurity president.
• Roger Thornton, co‑founder of Fortify Software and AlienVault.

The firm’s portfolio already includes notable exits such as Talon Cyber Security (acquired by Palo Alto Networks) and Pangea (bought by CrowdStrike), alongside emerging players like Armadin, GetReal, Nudge Security, and Oligo Security. Ballistic’s approach mirrors that of other cybersecurity‑focused funds—Forgepoint Capital and Ten Eleven Ventures—by targeting early‑stage companies that address emerging attack vectors, especially those leveraging AI.

Market Context: AI‑Driven Cybersecurity Boom

U.S. cybersecurity startups raised $11.5 billion in 2025, the highest level since 2022. The surge is driven by:

1. AI‑enhanced attack tools – hackers use generative models for phishing, social engineering, and malware creation, increasing the speed and scale of campaigns.
2. Demand for AI‑defensive solutions – enterprises seek tools that can detect AI‑generated threats, automate response, and provide predictive risk analytics.
3. Investor appetite – venture capital is flowing into firms that can marry AI capabilities with security expertise, anticipating a wave of high‑growth exits.

Microsoft’s recent Digital Defense Report warned that AI is becoming a staple in attacker arsenals, reinforcing the need for robust, adaptive security platforms. Ballistic’s new capital will likely be deployed to back founders tackling these challenges, from autonomous threat hunting to AI‑driven identity protection.

What to Watch Next

• Fund deployment timeline – Ballistic typically invests within months of closing a fund; early commitments may surface in the coming quarter.
• Deal flow focus – Expect a bias toward startups that combine deep security domain knowledge with AI/ML talent, especially those offering cloud‑native or SaaS‑based solutions.
• Competitive landscape – As more VCs chase AI‑security opportunities, differentiation will hinge on Ballistic’s network (Kleiner Perkins legacy, industry veterans) and its ability to add strategic value beyond capital.

Conclusion

Ballistic Ventures’ $490 million raise underscores the venture community’s confidence that AI will both intensify cyber threats and fuel a new generation of security innovators. With seasoned partners at the helm and a proven track record of successful exits, the firm is well positioned to back the next wave of AI‑powered defenses that will shape the cybersecurity market in the years ahead.