Ted Schlein's Ballistic Ventures aims to raise $490 million across two new funds

SEC filings for two funds

Ballistic Ventures, a California-based venture firm specializing in cybersecurity and founded by Kleiner Perkins alumnus Ted Schlein, filed applications this week with the U.S. Securities and Exchange Commission (SEC) to raise a total of $490 million, TechCrunch reports, citing regulatory filings. Of that, $360 million is earmarked for its third flagship fund — matching the size of the previous fund, raised in 2024. The firm plans to raise another $130 million for a separate vehicle called Ballistic Ventures Fund B. As of the filings, no sales of interests in either fund have been recorded, and the company declined to comment on its fundraising plans.

Context and portfolio

Ballistic Ventures was founded in late 2021; its founding team, alongside Schlein, includes former AT&T Cybersecurity president Barmak Meftah and Roger Thornton, co-founder of the security companies Fortify Software and AlienVault. The firm has invested in Talon Cyber Security, acquired by Palo Alto Networks,and Pangea, bought by CrowdStrike, as well as the startups Armadin, GetReal, Nudge Security and Oligo Security. In 2022, the company announced its debut fund of $300 million,and two years later raised its second flagship at $360 million; according to PitchBook data cited by TechCrunch, a separate Fund A raised about $130 million — the new Fund B is targeting a comparable amount.

AI is accelerating the market

The fundraising comes amid growing concerns that artificial intelligence is making cyberattacks more sophisticated, while simultaneously opening new opportunities for startups and their investors thanks to the spread of AI agents. According to a JPMorgan Chase report,which cites PitchBook, U.S. cybersecurity startups raised $11.5 billion in 2025 — the most since 2022; companies with AI technology accounted for about 72% of venture deals in the U.S. sector through May of this year, up from 36% in 2019. Microsoft, in its annual Digital Defense Reportpublished last month, warned that hackers are increasingly using AI — from phishing and social engineering to malware development — enabling attackers to act faster and at greater scale, although the underlying techniques remain largely the same.

Market position

According to one cybersecurity investor at another venture firm, whom TechCrunch spoke with, Ballistic stands out for its ties to Kleiner Perkins, where Schlein worked for more than two decades, although the firm's investment strategy is similar to other sector-specialized investors such as Forgepoint Capital and Ten Eleven Ventures. For readers tracking the venture market, the matching fund sizes are telling in themselves: the third flagship fund is filed at exactly the level of the previous one ($360 million), suggesting the firm is neither cutting back nor increasing its bet on the sector despite its heating up.