Ballistic Ventures Seeks $490 Million for Two Funds
The cybersecurity-focused venture firm filed with the SEC to raise capital across a third flagship fund and a separate vehicle.
Updated on Nov. 3, 2026 in Cybersecurity
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Ballistic Ventures, a cybersecurity-focused venture capital firm co-founded by Ted Schlein, filed with the U.S. Securities and Exchange Commission to raise $490 million across two new funds. Neither fund had recorded any sales at the time of filing.
Why it matters
The filing comes as growing use of artificial intelligence raises concerns about more sophisticated cyberattacks, and as AI agents create new opportunities for cybersecurity startups and their backers. Microsoft has warned that hackers are increasingly using AI for phishing, social engineering, and malware development.
The third flagship fund targets $360 million and Fund B targets $130 million, with Fund B aiming for an amount similar to Fund A. Final closing sizes remain unannounced pending investor commitments.
The players
Ballistic Ventures
A cybersecurity-focused venture capital firm based in San Francisco that has backed several companies later acquired by larger security vendors.
Ted Schlein
A longtime cybersecurity investor and co-founder of Ballistic Ventures, known for his prior work in the security venture capital industry.
The details
Ballistic Ventures was founded in late 2021 and announced a $300 million debut fund in 2022, then raised $360 million for its second flagship fund two years later. The firm has backed Talon Cyber Security, later acquired by Palo Alto Networks, and Pangea, later bought by CrowdStrike.
Timeline
Late 2021: Ballistic Ventures is founded.
2022: The firm announces a $300 million debut fund.
2025: U.S. cybersecurity startups raise $11.5 billion, the highest since 2022.
November 3, 2026: Ballistic files SEC paperwork for the $490 million raise.
The Tech Race
Microsoft has warned that hackers are increasingly using AI for phishing, social engineering, and malware development, and Ballistic's fundraising follows that shift. U.S. cybersecurity startups raised $11.5 billion in 2025, with 72% of U.S. cybersecurity deals AI-enabled through May, up from 36% in 2019.
The fundraising signals continued investment in security startups, which can shape which cybersecurity products reach businesses and consumers over the next several years. Startups backed by these funds may influence the tools used to defend personal accounts and company networks.
The takeaway
Growing AI-driven threats are pulling significant venture capital toward cybersecurity, which may favor startups that address AI-enabled attacks. Readers tracking the sector should watch whether these funds close at their targeted sizes.
Further reading
For more on how investors are backing security firms, see Cybersecurity coverage in San Francisco.
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Do you feel your personal data is safe from AI-powered cyberattacks?
