Ballistic Ventures Seeks $490 Million for Funds

The cybersecurity-focused venture firm filed with the SEC to raise money across two new funds, neither of which had recorded sales at the time.

Updated on Nov. 9, 2026 in Cybersecurity

Ballistic Ventures Seeks $490 Million for Funds

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Ballistic Ventures, a cybersecurity-focused venture firm co-founded by Ted Schlein, filed with the U.S. Securities and Exchange Commission seeking $490 million across two funds. The filing includes $360 million for a third flagship fund matching its 2024 fund's size and $130 million for a vehicle called Ballistic Ventures Fund B.

Why it matters

AI is driving concerns over more sophisticated cyberattacks while AI agents open new opportunities for security startups, shaping where investor capital flows in the sector. AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May.

The SEC filing shows the firm seeking $490 million, with $360 million for its third flagship fund and $130 million for Ballistic Ventures Fund B, while AI-enabled companies' share of U.S. cybersecurity venture deals reached about 72% through May, up from 36% in 2019. Whether either fund will attract investors has not been determined, as no sales had been recorded at filing.

The players

Ballistic Ventures

A cybersecurity-focused venture capital firm headquartered in San Francisco that has backed companies later acquired by Palo Alto Networks and CrowdStrike.

Ted Schlein

A longtime cybersecurity investor and co-founder of Ballistic Ventures, known for earlier venture work in the security industry.

The details

Ballistic Ventures, founded in late 2021 and headquartered in San Francisco, has backed Talon Cyber Security, later acquired by Palo Alto Networks, and Pangea, later bought by CrowdStrike. The firm declined to comment on its filing.

Late 2021: Ballistic Ventures was founded.
2024: The firm raised its prior flagship fund.
November 9, 2026: Fund filings were reported.

Roadmap

The filing extends a sharp shift in U.S. cybersecurity investment, where AI-enabled companies now account for about 72% of venture deals through May, roughly double their 36% share in 2019. Investor capital is increasingly tied to AI-driven threats and AI-agent security opportunities.

For users and businesses, the growing investment in AI-focused security startups signals more tools aimed at AI-driven attacks and AI-agent risks. Buyers evaluating security products may see new offerings from these funded firms in the coming years.

The takeaway

Investor attention is concentrating on AI-enabled security, so organizations should track how these funded startups address AI-driven threats. Reviewing vendor AI-security capabilities now can help prepare for shifting protection options.