Cybersecurity Investors Raise New Funds Amid AI Threats

Brightmind Partners and Ballistic Ventures are raising a combined sum of nearly $750 million to back cybersecurity startups.

Updated on Nov. 8, 2026 in Cybersecurity

Dark server-rack hardware in a cool-lit data hall with a single cable run and a blue fiber-optic bundle along a grated floor. — Brightmind Partners is raising a roughly $250 million second fund led by former Secret Service agent Stephen Ward, while Ballistic Ventures targets $490 million across two cybersecurity funds. AI Illustration. Upload story photo >

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Former Secret Service agent Stephen Ward is raising a second fund of roughly $250 million for Brightmind Partners, while Ballistic Ventures, led by Ted Schlein, is targeting $490 million across two cybersecurity funds. The raises come as AI-powered attacks strain traditional defenses.

Why it matters

AI-powered attacks are overwhelming traditional cybersecurity defenses, and the new capital signals investor appetite for security startups even as consumer tech and general software valuations have compressed. Cybersecurity valuations have remained relatively insulated during that broader downturn.

Brightmind's roughly $250 million second fund and Ballistic Ventures' $490 million across two funds are reported targets, not closed totals. IBM's study put the average 2023 data breach cost at $4.45 million, though the source does not say how these fund sizes compare to prior vintages.

The players

Stephen Ward

Stephen Ward is a former Secret Service agent who previously served as CISO at Home Depot and now leads Brightmind Partners' fundraising.

Brightmind Partners

Brightmind Partners is a venture capital firm focused on cybersecurity startups that is raising its second fund.

Ballistic Ventures

Ballistic Ventures is a venture capital firm that is targeting $490 million across two cybersecurity funds.

Ted Schlein

Ted Schlein is a venture capitalist who leads Ballistic Ventures.

Alex Stamos

Alex Stamos is the chief security officer of Cognition, an AI company.

The details

Stephen Ward, a former Secret Service agent who turned a hacker into an informant during investigations and served as CISO at Home Depot, is raising a second Brightmind Partners fund of about $250 million. The fund is aimed at the next generation of cybersecurity startups, and Brightmind is positioned to lead rounds and take board seats rather than only participate.

2023: IBM reports the average cost of a data breach reached $4.45 million.
November 8, 2026: Reports say Brightmind is raising its roughly $250 million second fund.

The Tech Race

The raises follow IBM's annual Cost of a Data Breach study, which put the average 2023 breach at $4.45 million. Those costs have given investors a rationale to keep funding security startups even as broader software valuations have fallen.

Companies facing AI-powered attacks may accelerate security purchases, which can shape the tools employees and customers encounter. The new funds could bring more security startups to market over the coming years.

The takeaway

Investor money flowing into cybersecurity suggests defensive tools will keep improving as AI-driven threats grow. Organizations should expect security spending to rise as breach costs remain high.